Todd River Resources has obtained the rights to a new nickel sulphide exploration terrain within the Nanutarra nickel project in Western Australia.
It has entered into an option to farm-in-agreement with private group Cratonix, giving the company potential for a joint mining venture once it has gained 80 per cent interest in the tenement.
If Todd River earns the 80 per cent interest and meets minimum spending requirements ($2 million) within the 12-month exploration period, Cratonix’s 20 per cent interest will be free carried to a decision to mine.
Should both parties make the decision to mine, Cratonix can elect to contribute its 20 per cent share of costs or convert its interest to a 1.5 per cent net profit royalty.
Todd River believes the tenement, which is in WA’s Western Gascoyne region, is prospective for mafic-hosted nickel sulphide mineralisation.
It plans to review existing geophysical data and start a reverse circulation drilling program, testing the nine-square-kilometre area for mineralised sulphides associated with electro-magnetic conductors or previously indicated from shallow drilling.
Todd River managing director Will Dix said the addition of another base metal project to the company’s portfolio reinforced its commitment to base metals.
“We are delighted we have been able to move quickly to lock down this exciting nickel opportunity for the company,” Dix said.
“With our in-house knowledge and expertise in nickel exploration, we believe we will be able to effectively and efficiently explore the project to maximise the opportunity it presents.