Monax Mining has entered a farm-in and joint venture (JV) agreement with Mithril Resources to earn up to 80 per cent of Mithril’s Limestone Well tenements in Western Australia.
The Limestone Well vanadium tenements lie north along strike from the Neometals-owned Barrambie titanium-vanadium deposit, approximately 90km southeast of Meekatharra.
The high-profile Barrambie project has JORC 2012 inferred and indicated resources of 280.1Mt at 9.18 per cent titanium and 0.44 per cent vanadium.
Monax has to spend $2.5 million on exploration over five years in order to secure 80 per cent of Mithril’s two tenements at Limestone Well (20/846 and 51/1069).
The farm-in will occur in two stages. Monax must spend a minimum of $150,000 in the first year before being able to withdraw. In stage one, the company can earn up to 60 per cent of Limestone Well by spending $1.5 million on exploration within three years.
Following completion of stage one, Monax can increase this from 60 per cent to 80 per cent by investing a further $1 million over a further two years. Mithril can choose to contribute on a pro rata basis after each stage.
Monax plans to instigate reconnaissance drilling at Limestone Well “as soon as possible”, according to a joint statement.
Mithril managing director David Hutton said, “[The] new agreement allows Mithril to remain focused on the Kurnalpi nickel project where drilling has just finished and assays are awaited and the new Billy Hills zinc project where two tenements have just been granted.”