Queensland-based Metallica Minerals has entered into a joint-venture with Salisbury Resources to explore the potential of three tenements in South Australia.
According to the company, the Toby, Lake Torrens and Merna Mora tenements are attractive, “Olympic Dam-type targets,” meaning they may contain deposits of iron oxide, copper, uranium and gold.
Metallica Minerals will inject an initial $300,000 into the assessments as part of a cornerstone seed capital investment in the Adelaide-based explorer.
The company has also made a $100,000 cash investment to obtain a 6% interest in Salisbury, should its planned initial public offer and Australian Securities Exchange listing go ahead later this year.
According to Metallica managing director Andrew Gillies, entering into South Australia was an attractive move, despite any exploration risks.
“The region is home to large-scale copper-gold and uranium mining operations and high quality mineral discoveries,” he said.
“It also hosts sufficient infrastructure and is backed by pro-mining industry and government support which will enable any economic discoveries to be commercialised within reasonable timeframes.”