West Perth-based iron ore explorer Territory Iron Ltd has signed an agreement with GBS Gold Australia Ltd, sharing technical information and allowing both parties to explore the other's tenements.
The full text of a company announcement is pasted below
Territory Iron has struck an agreement with GBS Gold Australia Pty Ltd which allows Territory Iron to explore for iron ore on GBS controlled tenements EL24715 and EL23506 in the Frances Creek area of the Northern Territory.
In return, GBS has the right to explore for gold on Territory Iron tenements EL24040, EL9999 and EL22856.
The two companies will also share technical information as exploration of mutual areas progresses, which could have benefits to both parties through cost savings and better exploration outcomes.
"This is an important agreement for Territory Iron," managing director Doug Stewart said. "It pulls together under our banner all iron ore prospective ground that we do not already hold at Frances Creek.
"This prospective ground extends northwards from the Frances Creek mine site to near the Mary River - a distance of about 35 kilometres. The availability of this extensive tract of ground will give a significant boost to our exploration efforts next year.
"To date our exploration team has had great success around the old Frances Creek mine site, where we have increased Resource tonnage to 9.4 million tonnes with defined Reserves of about 3.9 million tonnes."
Mr Stewart said a further Resource and Reserves upgrade was due to be announced in the coming weeks once resource modelling and mine planning studies were completed.
GBS is an Australian subsidiary of GBS Gold International Inc, and recently commenced gold mining at Union Reef in the Northern Territory's Pine Creek area.
