OZ Minerals has partnered with Mithril Resources to explore seven new licence areas in South Australia’s last underexplored frontier.
The exploration will take place in the Coompana Province in SA’s far west, with its first stage to conduct a target generation exercise to identify potential drill targets. OZ Minerals will invest $250,000 as part of the stage one targeting.
OZ Minerals CEO and managing director Andrew Cole said the area was “real frontier country”.
“It is exciting greenfields exploration in rocks that are comparable to those just across the border that are known to host major mineral deposits,” he said.
Cole added that the project supports the state government’s Plan for Accelerating Exploration (PACE 2020) program, a $10.2 million expansion of the initial PACE initiative that aims to increase the state’s resource exploration and mining developments.
The PACE program collected and released geoscientific data set over the Coompana Province, including a high resolution aeromagnetic, seismic survey data and magnetotelluric data. It is also planning an extensive ground gravity survey for the last quarter of 2016.
Mithril Resources managing director David Hutton said the partnership will “leverage the combined strength and knowledge” of both companies.
If potential drill targets are found, then negotiations on a joint venture could take place to conduct exploration.
Mithril could begin initial drill testing in early 2017.
Another frontier project supported through the PACE program is the non-intrusive ground seismic survey which recently released geological images of the Nullarbor Plains. Conducted in collaboration between Geoscience Australia, the Geological Survey of South Australia, and the Geological Survey of Western Australia, the images provide a better indication of key mineral deposits in the area.
OZ Minerals is also expanding its plans to develop the new Carrapateena copper-gold mine in SA’s far north. It will be a 2.8 million tonnes per annum mine, set to create 400 new jobs, and have an operating life of 20 years.