Rio Tinto Exploration has extended the farm-in period of the Musgrave nickel-copper-cobalt joint venture (JV) agreement with PepinNini Lithium until December next year.
The project, which is located in north-western South Australia, comprises 10 tenements held 100 per cent by PepinNini and four held under a farm-in joint venture with Rio Tinto Exploration.
The South American company is hoping to unearth nickel-copper sulphide mineralisation and base metal exploration as it explores the 14,003 square kilometre zone.
With the farm-in period extended, PepinNini also has the option to earn up to 51 per cent interest in the four tenement application areas held by Rio Tinto Exploration covering 615 square kilometres under a farm-in jot venture agreement. The area includes the shallow, well-defined Pink Slipper nickel-copper sulphide mineralisation.
The company is primarily targeting the province for large magmatic sulphide deposits, similar to the Nova-Bollinger and Nebo-Babel deposits in Western Australia.
Under the joint venture terms, PepinNini is still required to spend just over $1 million on exploration in the Musgrave region in order to earn a 51 per cent interest in the project.
Once it has met these spending terms, the 51 per cent PepinNini/49 per cent Rio Tinto joint venture will be formed.
PepinNini has been building its presence in Australia in recent months, having signed a $4 million deal with Ausmex Mining to acquire the Gilded Rose gold project in Queensland.
It has also updated its board of directors, reflecting its transition from an explorer to a producer.