Australian Mines has scheduled four diamond drill holes to test the Arunta West iron oxide copper gold (IOCG) ore deposits at its copper-gold operation in Western Australia.
The management of the project is currently being transferred to subsidiary Norwest Minerals, which plans to raise $6.6 million by the end of October this year via initial public offering (IPO).
Australian Mines is appointed as operator of the project under a joint venture (JV) agreement with Jervois Mining in 2016.
Norwest Minerals chief executive Charles Schaus said, “Without question, the sheer size of the anomaly, combined with its magnetic-gravity IOCG signature makes North Dovers a very exciting exploration target.
“Plus, the generous [Western Australian] government contribution up to $200,000 to support Norwest, the first company to drill into the North Dovers anomaly, certainly lightens our overall financial commitment and risk.”
The North Dovers was identified a prospect by BHP in 1999, who revealed a gravity-magnetic anomaly suggestive of an IOCG deposit.
But due to strict access, drilling by BHP was abandoned before achieving its target depth.
Australian Mines has the permission to conduct exploration programs across the 1500-square-kilometre Arunta West tenement holding located around 600km west of Alice Springs, WA. Permission was granted by Aboriginal corporation Tjamu Tjamu RNTBC who manages the land.
Australian Mines saw extremely high value growth from June 2017 to June 2018, up 643 per cent to $238 million according to a recent index report from Deloitte.