Iluka and Mithril form JV for Sth Aust heavy sands exploration

Iluka Resources Ltd's, wholly owned subsidiary Iluka (Eucla Basin) Pty Ltd and Mithril Resources have formed a joint venture to explore heavy mineral sands at Mithril's exploration license in the Eucla Basin, South Australia.

Under the terms of the Kalli Joint Venture, Iluka will earn a 51 per cent interest by meeting the following obligations:
* completing a minimum 1,500 metres of drilling; and
* incurring expenditure of $1.5 million over five years.

The Kalli Joint Venture area is approximately 27 kilometres west of Ceduna and adjoins tenements held by Iluka and the Iluka and Adelaide Resources Limited Colona Joint Venture.

Iluka has been involved in four heavy mineral discoveries including Jacinth, Ambrosia and Gulliver's Prospect (100 per cent Iluka), and the Tripitaka discovery in conjunction with Adelaide Resources.

The Kalli Joint Venture is confined to mineral sands exploration, with Mithril retaining the rights to all other mineral deposits.

Once Iluka has earned its 51 per cent interest, Mithril has the option of contributing its 49 per cent share of ongoing expenditure or alternatively diluting its interest to a minimum of 10 per cent.