West Perth-based Western Areas NL and Melbourne-based Troy Resources NL have signed an agreement to explore for nickel at Sandstone in Western Australia, the companies have announced.
West Perth-based Western Areas NL and Melbourne-based Troy Resources NL have signed an agreement to explore for nickel at Sandstone in Western Australia, the companies have announced.
Troy Resources NL ("Troy") and Western Areas NL ("Western Areas") have signed a letter of Intent with respect to an earn-in exploration joint venture pertaining to nickel exploration and development at Sandstone in Western Australia.
Western Areas has the right to earn up to a 51% interest in the nickel rights on Troy's Sandstone Project by sole funding $4M expenditure on exploration over a four year period with a minimum first year expenditure of A$500,000.
Western Areas can then elect to earn an additional 19% interest by sole funding to completion of a Bankable Feasibility Study and decision to mine.
If Western Areas earn a total of 70% and a decision to mine is made Troy can elect to contribute to JV expenditure pro rata to Troy's 30% interest or elect to dilute to a royalty.
Sandstone is located approximately 660km northeast of Perth, Western Australia within the Sandstone greenstone belt near the northern end of the Southern Cross province of the Archaean Yilgarn craton. The Southern Cross province has during the past few years been the focus of intense nickel sulphide exploration resulting in a number of
discoveries.
At Sandstone, exploration for nickel sulphides has been minimal with no modern work undertaken. The last nickel focused exploration effort was completed by Kennecott Exploration Incorporated between 1969 and 1972.
Recent work by Geological Survey of Western Australia and a study by the Centre for Exploration Targeting at the University of Western Australia funded by Troy has highlighted the prospectivity for nickel in the southern portion of the greenstone belt.
Troy will retain ownership of the tenements and all rights to gold and other minerals excluding nickel.
"Troy is pleased to be a partner with Western Areas that brings its extensive nickel exploration and development experience to our Sandstone Project" said Mr. Paul Benson, CEO of Troy Resources.
Western Areas Managing Director Mr Julian Hanna said "Western Areas is looking forward to working on this exciting new project with Troy Resources. This new project further consolidates our extensive holdings in this nickel rich region."
