Independence Group (IGO) now owns 90 per cent of the Plumridge nickel project in the Fraser Range, Western Australia after completing its farm-in expenditure with joint venture partner Arrow Minerals.
IGO had the right to increase its JV interest in the project from 51 per cent to 90 per cent under the farm-in agreement by spending $5 million on the project within four years, a sum the company completed in just 17 months.
The money was used to provide aircore drilling programs, airborne electromagnetic surveys (AEM) and ground moving loop electromagnetic (MLEM) surveys, in addition to drilling of four bedrock targets identified by the aircore drilling program.
IGO and Arrow began drilling of the nickel-copper-zinc conductor plate targets in April 2019. The targets are considered prospective for mineralisation similar to IGO’s Nova mine located 200 kilometres to the south.
Arrow will maintain a 10 per cent residual interest in the Plumridge project through further contributions to the JV (which will become a one per cent net smelter return royalty on all future production should it elect not to contribute further).
The junior company raised $5.2 million through the initial JV agreement between the two companies in February 2018. It used the proceeds of the raising to accelerate funding of its Barlee Gold and Malinda lithium exploration projects.
Incidentally, IGO’s Tropicana joint venture with AngloGold Ashanti is also about 120 kilometres north of Arrow’s tenements.
Both Nova and Tropicana have achieved strong production this year, with IGO posting record production and cash costs from the former in the March 2019 quarter.