26/07/2007 - 11:52

Mineral Sands signs Olympia farm-in for Eucla licences

26/07/2007 - 11:52

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Perth-based mineral sands explorer Mineral Sands Ltd will earn 80 per cent of three Eucla exploration licences held by Herdsman-based Olympia Resources Ltd by spending around $360,000 on exploration, under a farm-in agreement signed today.

Mineral Sands signs Olympia farm-in for Eucla licences

Perth-based mineral sands explorer Mineral Sands Ltd will earn 80 per cent of three Eucla exploration licences held by Herdsman-based Olympia Resources Ltd by spending around $360,000 on exploration, under a farm-in agreement signed today.

 

 

The full text of a company announcement is pasted below

  • Joint venture farm-in between Mineral Sands Limited and Olympia Resources Limited in Eucla Basin, adjacent to the Mineral Sands Limited Pioneer project area.
  • Mineral Sands Limited to earn 80% of the licence's through meeting the expenditure commitments over 2 years.
  • Joint venture landholding comprises 457.6 sq kms.

Mineral Sands Ltd (ASX: MSN) and Olympia Resources Ltd (ASX: OLY) are pleased to announce a joint venture farm-in for the exploration licenses EL 69/2090, 69/2091 and 69/2092 in the Eucla Basin.

Olympia Resources and Mineral Sands announce that they have signed an agreement where Mineral Sands can earn 80% of the above exploration licences by carrying out exploration on the tenements, sufficient to meet the minimum expenditure commitments for a period of two years, by spending approximately $360,000 on exploration of the tenements.

The joint venture tenements are adjacent to Mineral Sands Limited tenements which yielded intersections of significant zircon rich heavy mineral with grades up to 4.2% HM and zircon contents up to 42% earlier in 2007.

Peter Gazzard, Managing Director of Olympia Resources, comments, "The joint venture with Mineral Sands will allow Olympia to retain an interest in its Balladonia tenements while prioritising our expenditure on developing mines at Harts Range and Keysbrook and a zircon processing plant in Kalimantan. Although we continue to explore in Southwest WA and Kalimantan Olympia sees that moving its advanced projects into production and cashflow is the best means of adding value for its shareholders."

Patrick McManus, Managing Director of Mineral Sands, comments, "This agreement allows Mineral Sands to increase its landholding in an area where we have had recent success in our mineral sands exploration programme. Encouraging results on the adjoining Pioneer project area were reported to the market 27 June 2007 and the joint venture enables Mineral Sands to increase land tenure in the Western Eucla project area."

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