Perth-based explorer Bauxite Resources has signed an MOU with a Chinese group, aimed at establishing a 'farm-in' type arrangement for exploration at the company's Darling Range tenements for all minerals other than bauxite.
Perth-based explorer Bauxite Resources has signed an MOU with a Chinese group, aimed at establishing a 'farm-in' type arrangement for exploration at the company's Darling Range tenements for all minerals other than bauxite.
The MOU provides both parties with the framework to work together over the next three months to ascertain whether an agreement can be reached as to the suitable terms for a 'farm in' type arrangement.
SDGM may carry out its own drilling and exploration, at its own expense, in return for earning an interest in all mineral discoveries other than bauxite, of which BRL retains exclusive rights.
Full announcement below:
BRL SIGNS FARM-IN MOU WITH CHINESE GEOLOGICAL BUREAU FOR DARLING RANGE MINERAL EXPLORATION
Highlights
- Memorandum of Understanding (MOU) signed with Shandong Provincial Bureau of Geology & Mineral Resources (SDGM) for 'farm-in' type arrangement for exploration at BRL's Darling Range tenements for all minerals other than bauxite
Terms of MOU include the working towards an agreement for BRL to contribute knowledge, expertise and experience in return for direct investment in exploration by SDGM
SDGM may carry out its own drilling and exploration, at its own expense, in return for earning an interest in all mineral discoveries other than bauxite
BRL to enable SGDM access to Exploration Licences (ELs), database of historical workings and expertise
Tenement acquisition activities continue with the company now holding 54 Exploration Licences (ELs) in the Darling Range covering approximately 11,000 square kilometres
Perth-based bauxite explorer, Bauxite Resources Limited, (ASX: BAU; "BRL"), has signed a Memorandum of Understanding with the Chinese-based Shandong Provincial Bureau of Geology and Mineral Resources ("SDGM") who have a State sanctioned mandate to actively source a variety of minerals throughout the world to support China's, and in particular the Shandong Provinces industries and economic growth. The signing of the MOU follows visits by representatives of SDGM earlier in the year, ongoing discussions and negotiations, culminating in the signing ceremony at BRL's offices on 17th November 2008, attended by 11 delegates from SDGM.
The MOU essentially provides both parties with the framework to work together over the next three months to ascertain whether an agreement can be reached as to the suitable terms for a 'farm in' type arrangement. BRL would contribute its knowledge, expertise and experience together with access to its Exploration Licences (EL's) and databases of historical workings, while SDGM would pay for and carry out its own drilling and exploration in return for earning an interest in all mineral resources discovered other than bauxite, of which BRL retains exclusive rights.
The Shandong Provincial Government has been actively encouraging SDGM to secure resources from overseas for the economic future of the Shandong Province, which has scarce mineral resources.
"As one of the fastest growing economies in China, Shandong Province has an enormous requirement for minerals to support its increasing strong economy," said Ms Zheng Jinlan, Director-General of Shandong Bureau of Geology & Mineral, at the signing ceremony in Perth yesterday. "Our cooperation will assist BRL establish a substantial market for any minerals mined on its tenements; we believe that SDGM could be referred to as BRL's partner and assist its access to the markets in Shandong," she added.
Mr Dan Tenardi, Managing Director of BRL, sees this MOU as evidence that SDGM recognises the significant mineral potential of BRL's Darling Range tenements. These tenements now cover some 11,000 square kilometres and reinforce, in the context of China's enormous growth, BRL's tenement acquisition strategy of acquiring ground in areas with mineral prospectivity upside and existing infrastructure.
SDGM are recognised as a major force in China in terms of exploration, development and sale of minerals and have established a reputation for geo-mineral exploration, hydro geological exploration and environmental geological surveying. They also have an envied reputation in geological exploration, equipment in operation development and expertise in mining exploration and development.
In addition, SDGM have developed a niche market for their geotechnical surveying, geotechnical investigation and foundation construction, having been involved with the construction of airports, railways, cableways and most recently, in work for the Beijing Olympic Games venues.
BRL has recently expanded its exploration tenements in the Darling Range by approximately 2,500 square kilometres since September 2008, taking the total area under application to over 11,000 square kilometres. The acquisition of the recent EL's has helped secure the MOU with SDGM, who, over the years, have built a reputation of establishing strategic resource bases in foreign countries.
"One of the missions for this Bureau is to help find resources overseas for the factories in our province, including steel mills and alumina refineries. We have actually formed strong alliances with these companies and through this kind of alliance; we are able to raise funds for the future development of the resources we have found. Hence a win-win situation for all parties," said Ms Zheng at the signing ceremony.
