South Australia-focused explorer Monax Mining has signed a deal with Fortescue Metals Group to complete due diligence on a copper-gold project in SA.
In a statement Monax said it had three months to complete the project, which was within the Amber Zone of the Woomera Prohibited Area.
“Access to this prospective target has previously been denied since 1985,” the company said.
Monax said after reviewing the current data it had discovered a gravity anomaly that could not be explained by previous work.
“A single historical drill hole completed over 1km from the target to a depth of 674m which failed to intersect basement rocks also did not identify the anomaly,” it said.
“Monax plans to undertake a detailed ground gravity survey over the feature as soon as possible to assist in defining the target for drill testing.
“On completion of its due diligence investigations and the gravity survey and subject to satisfactory results, the parties will negotiate legally binding farm in and joint venture agreements, allowing Monax to earn an interest in the project.”
The agreement signals the latest good news for Monax, after the company announced exciting results from graphite exploration in SA earlier this year.