Evolution Mining has secured an earn-in joint venture agreement with Terramin subsidiary, Menninnie Metals, at the South Gawler gold-copper project in South Australia.
South Gawler, a greenfields exploration project, is about 320km northwest of Adelaide in the northern Eyre Peninsula. It is said to have similar characteristics to the Olympic Dam, Carrapateena and Prominent Hill operations.
According to Evolution, the primary target at South Gawler is an iron oxide copper-gold (IOCG) deposit beneath shallow to deep cover.
It added that limited modern exploration has taken place in the larger part of the project, which has only recently been recognised as having the potential to host IOCG deposits.
Evolution vice president of discovery, Glen Masterman, said the Gawler Craton mineral province hosts several world-class gold-copper deposits and large areas have not seen extensive exploration.
“The South Gawler joint venture is a rare opportunity to secure a significant land position in an emerging area of the mineral province,” Masterman said.
Evolution can earn 70 per cent equity in the project if it spends $4 million on exploration at the site over four years.
Terramin can then elect to contribute to the exploration, or Evolution can earn an additional 10 per cent to increase its ownership to 80 per cent by spending a further $2 million over two years.
According to Terramin, the JV has been formed to accelerate exploration of breccia style targets with similar characteristics to Olympic Dam, Carrapateena, Prominent Hill and IOCG deposits elsewhere.
Terramin chief executive officer Martin Janes described Evolution as a well-funded company which shared similar views on the exploration potential of the area.
“There is growing evidence that hydrothermal systems occur in the southern Gawler Ranges area which is consistent with the new JV’s exploration model,” Janes said.
Evolution has the option to withdraw from the project after spending a minimum $500,000 in the first year.