|New Exploration Agreement with Minotaur on Corkwood Copper-Gold Project, Qld|
Red Metal Limited is pleased to announce that Minotaur Exploration Ltd (ASX:MEP) has signed an exploration joint venture heads of agreement over the Corkwood project located in the highly prospective Cloncurry region of northwest Queensland.
The project is situated about 100 kilometres northwest of Glencore’s large Ernest Henry copper-gold mine and about 60 kilometres north of Altona Mining Limited’s Little Eva deposit (59Mt @ 0.6% copper, 0.1g/t gold) which is the subject of a definitive feasibility study. Corkwood contains numerous magnetic target zones considered prospective for repeats of these styles of mineralisation.
Intersections of wide zones of significant copper, gold and silver mineralisation have been achieved on the Jimmy’s Creek breccia prospect including a best intersection of 0.4% copper, 0.1 g/t gold and 10g/t silver over a down-hole interval of 153 metres. This prospect shares similar geological characteristics to the Ernest Henry and Little Eva ore bodies and it is hoped that other mineralised breccia systems may exist nearby.
Under the terms of the heads of agreement Minotaur has the right to earn 51% of the Corkwood group of tenements by spending $3.0 million on exploration over 3 years. Having earned 51%, Minotaur has a one-off election to earn an additional 19% of the project by sole funding a further $3 million towards exploration over an additional 2 year period. Red Metal’s equity in any discovery could vary between 49% or 30% dependent upon Minotaur’s election.
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