Terramin Australia subsidiary Terramin Exploration (TEL) has entered a joint venture agreement with Environmental Copper Recovery (ECR) for the potential development of a new copper project in Kapunda, South Australia.
The joint venture will investigate the potential to extract the copper through low cost in-situ recovery (ISR) from shallow oxide ores in and around the historic Kapunda Mine area.
ISR uses solutions pumped through boreholes into the mineralised body to dissolve the desired metals. This solution is then extracted and processed in a recovery plant at the surface.
If field leaching tests are successful, then a feasibility study of the project to produce copper and possibly gold at low capital and operating costs will be commissioned.
Under the agreement, ECR can earn a 50 per cent interest in the project after spending $2 million on field trials and associated studies. ECR is also able to earn an additional 25 per cent interest by spending another $4 million.
Commenting on the agreement, Terramin CEO Martin Janes said the new joint venture will add to the company’s suite of mining projects.
“This opportunity will give Terramin the ability to focus on its flagship Tala Hamza zinc project and high-grade Bird-in-Hand gold project while leveraging off its portfolio of other valuable assets,” he said.