Copper Search (ASX:CUS) has completed the conditions precedent of the exclusive option with Rimfire Pacific Mining (ASX:RIM), which allows the former a six-month exclusive option to purchase the Cowal Project outright with certain milestone payments and royalties.
The new combined Theseus Project covers 944km2 and comprises a 100% owned Copper Search ELA 6903 (489km2) and Rimfire’s Cowal Project tenements (455km2).
The project is located 320km west of Sydney, New South Wales and is part of the Lachlan Fold Belt, which includes the Macquarie Arc. The Macquarie Arc is Australia’s ‘premier’ porphyry copper-gold province, hosting several world-class mines, including Newcrest’s (ASX:NCM) Cadia mine, and Evolution Mining’s (ASX:EVN) Northparkes and Cowal gold mines.
Copper Search Managing Director Duncan Chessell says Copper Search has been actively evaluating several opportunities across the Lachlan Fold Belt, which it considers to be a robust mining jurisdiction with close proximity to aforementioned operating mines, and demonstrated economic scale potential.
The company’s geology team, led by Senior Exploration Geologist Ian McBride, Theo Aravanis (Principal Geophysicist), and Professor Bruce Schaefer, will begin due diligence.
This includes a thorough gap analysis of historical works, reprocess geophysics, and application of modern mineral geochemistry to determine the project’s full potential.
Chessell says this will help to inform a decision to purchase outright, and on the favourable decision to buy, plan next steps to validate with further geophysics or drilling.
“So, we are excited to have secured this strong ground position in the area and can begin our rigorous due diligence process. Drawing upon world-leading experts, like Professor Bruce Schaefer, to assist our exploration team is a real positive for investors,” Chessell adds.
“This technical expertise, which is rarely seen in the junior space, gives Copper Search a significant advantage. From a corporate view, the deal’s structure also highlights how we execute our new strategy to develop a pipeline of drill targets.
“The low-cost option allows us the flexibility to secure an opportunity for our shareholders and leverage our world-class team to make a fully informed decision – either to proceed with drilling or to walk away – before deploying significant amounts of shareholder capital.”
Write to Adam Orlando at Mining.com.au
Images: Copper Search
