ASX-listed Venus Metals has entered into an option agreement with local prospectors to acquire a 90 per cent interest in an interesting looking base metals and gold land package. The agreement covers seven exploration license applications over an area of 1,366 square kilometres across the Narndee-Windimurra layered intrusive complex, just 15km west of the Youanmi igneous complex that hosts Venus’ Youanmi gold interests.
Venus said the extensive tenement package is being evaluated under option and if it decides to exercise its option, it will then enter into a joint venture arrangement at what will be called the Narndee Gold-Copper-PGE project. Much of the initial effort will involve a geological review of the historical data base and if the option is exercised, the prospectors will have a 10 per cent interest in any subsequent JV.
The company’s technical team said the land bank covers a geological terrain that includes the Narndee and Windimurra layered intrusions and associated granitoid and greenstone terrain. The ground is mostly covered by surface soils and therefore has remained largely unexplored.
According to the company, the geology under the licenses is prospective for magmatic nickel-copper-PGE targets, orogenic gold deposits and even VMS-style base metals mineralisation, providing Venus with a mixed potpourri of opportunities to sink its teeth into.
Venus said the terrain had similarities to South Africa’s Bushveld igneous complex however the local area has been dissected by large scale shear zones, making it historically difficult to vector in on decent targets.
Under the option agreement with the two prospectors, Venus currently has until September 1st to conduct exclusive due diligence and it has paid a non-refundable fee of $20,000 for the privilege. Venus said it would issue the prospectors 600,000 Venus shares at a deemed issue price of $0.20 per share if it exercised its option.
One of Venus’ subsidiary entities will manage any future JV, control the future exploration programs and budgets and bear all future costs until a decision to mine is reached. In that event, the prospectors have an option to convert their 10 percent interest into a one per cent net smelter royalty.
The agreement states that any JV program over the next two years, after the tenements are granted, must include at least 10km of drilling on those lands. To date, only a small amount of shallow drilling has been done around some soil geochemical targets, according to the company.
Under-explored land that has been historically concealed by cover is coming into vogue now with a number of ASX-listed companies and the lack of past exploration opens up a bit of blue sky for companies such as Venus.
Is your ASX listed company doing something interesting ? Contact : matt.birney@businessnews.com.au
