IGO is set to establish a joint venture (JV) with Encounter Resources for the Yeneena copper-cobalt project in the Paterson province of Western Australia.
The earn-in and JV agreement would allow IGO to earn a 70 per cent interest in Yeneena by sole funding up to $15 million worth of exploration over seven years.
As part of the agreement, IGO will have the right to become the manager of Yeneena.
IGO exercised this option after signing an agreement with Encounter in 2018. This was followed by an extensive program of advanced geophysics and geochemistry last year.
Encounter managing director Will Robinson described the partnership with IGO as “just what Yeneena needed.”
“The Paterson province is a highly fertile district with enormous potential for new copper-cobalt discoveries under thin sand cover,” Robinson said.
“Deploying a suite of new exploration methodologies in 2019 has provided a whole new perspective on the mineral potential at Yeneena.
“We look forward to continuing this exciting partnership with IGO to refine and test a number of large-scale copper-cobalt targets at Yeneena in 2020.”
The Yeneena project comprises around 1400 square kilometres within the Paterson province.
Last year’s exploration uncovered promising large-scale targets, including the Windsor Fault, which is two kilometres north of the BM1 prospect, a zone of near-surface copper oxide and cobalt mineralisation.
The project also hosts the Aria prospect, which 3D audio-magnetotelluric surveying has shown to identify conductive zones that may be associated with copper sulphide mineralisation.
Encounter, with the support of IGO will commence another exploration program at the project.
This is scheduled to start in April and May and continue through to November.
The exploration will include additional ground geophysics and application of geochemistry, followed by aircore, reverse circulation and/or diamond drilling.