Frome Joint Venture Projects
The Frome Joint venture project (Red Metal earning 70% from Variscan Mines Limited) covers tenements located in the north-western portion of the metal-rich Curnamona Province, targeting Olympic Dam style mineralisation in the basement rocks as well as giant sandstone hosted, roll-front type uranium plays hosted in the same Tertiary sedimentary sequences as host the nearby Beverley and Four Mile uranium deposits.
Processing and interpretation of new, high resolution airborne electro-magnetic data has successfully mapped the previously unrecognised, northward extension of the Paralana fault system on to the Frome joint venture projects. The Paralana fault system is a deep seated, long life structural zone which is interpreted to play an important role in the localisation of prospective sand sequences and uranium mineralisation.
Under the terms of the Variscan heads of agreement, Red Metal can earn 51% by spending $1M on exploration and can elect to spend an additional $2M to earn a 70% equity.