ASX-listed mineral exploration company Enegex (ASX:ENX) reports it has executed a sale agreement with Caravel Minerals (ASX:CVV) for tenement E70/5442 located within the Walebing Project in Western Australia.
As part of the agreement Caravel will provide Enegex with an uncapped 2.5% net smelter royalty (NSR) from any mineral production within the tenement, along with a cash payment of $75,000.
Also included in the agreement is a surface sample database across Enegex’s West Yilgarn tenure area, including proprietary roadside surface sample assay results collected by Dominion Mining (ASX:DOM) between 1998 and 2011 with an agreed value of $250,000.
The company notes access to pulp residues from samples within Enegex’s West Yilgarn tenure area, and exploration data generated from Caravel’s activities to be undertaken on the tenement is also included in the agreement. The completion of the agreement is expected to occur before the end of March 2023.
Commenting on the agreement, Enegex Director Rae Clark says: “We are very pleased to announce this transaction with copper-focused Caravel and excited to review the significant new dataset that this transaction provides to Enegex.
“The new dataset will be combined with existing datasets to help refine and prioritise targets and to potentially generate new targets over our West Yilgarn projects”
The new dataset will be combined with existing datasets to help refine and prioritise targets and to potentially generate new targets over our West Yilgarn projects.
The transaction will also provide Enegex with exposure to Caravel’s exploration expertise through a royalty agreement in an area that is located less than 4km from their flagship copper project.
Results of Caravel’s exploration within E70/5442 will also be provided to Enegex as part of the agreement. These results could have implications for exploration on Enegex’s adjoining Walebing Project as well as our wider West Yilgarn area tenure.”
Enegex reports as well as providing for a 2.5% NSR and cash consideration, the agreement will also provide the company with access across its entire West Yilgarn tenure to the same geochemical sampling dataset that led to the discovery of the Caravel Copper Project owned by Caravel.
The Caravel Copper project is located adjacent to the eastern boundary of Enegex’s Walebing project and is reported to be the ‘largest’ undeveloped copper project in Australia.
The project currently holds a mineral resource of 1.18 billion tonnes @ 0.24% copper (Cu), and 48 parts per million (ppm) molybdenite (Mo) for 2.84 million tonnes of contained copper.
Enegex says the transaction provides future long-term exploration exposure through an uncapped 2.5% NSR to any mineral production within the tenement, which will leverage Caravel’s exploration expertise and access to funding in a ‘highly prospective’ terrane.
The transaction has been structured so that it is simple and ‘highly’ compelling for Enegex shareholders as it provides a ‘lucrative’ NSR, a cash payment, and a ‘valuable’ proprietary dataset over the company’s West Yilgarn tenure.
The sample data being made available to Enegex includes a portion of the Dominion Mining roadside sampling data collected over a 13 year period. The original laboratory analysis focused on gold and as it includes access to sample pulps, there is scope to add value to the data by re-assaying for multi-elements.
Enegex reports reconnaissance visits to target areas within the West Yilgarn Project are being systematically completed now that crops have been harvested. Land holder access negotiations are also continuing over all project areas.
Following completion, the newly acquired dataset will be reviewed and any geochemical anomalies identified will be prioritised and integrated with Enegex’s existing exploration targets so that the data is able to be utilised in the current field season.
Field reconnaissance visits will be reprioritised, in the expectation that new target priorities and target areas with strong geochemical anomalies may result from the new dataset, and in order to assess such areas for further exploration work, including additional geochemical sampling.
The company also reports multi-element laboratory analysis of the Dominion Mining pulps is planned to be completed over ‘high-priority’ target areas. The multi-element data could then potentially be used to vector into mineralisation using trace elements and potentially assist in identifying underlying geology.
Enegex is an Australian mineral exploration company primarily focused on nickel-copper-platinum group elements (Ni-Cu-PGE) in the West Yilgarn Province of Western Australia.
Projects held by the company in this region include the Miamoon, Miling, Walebing, Goomalling, and Green Hills projects. The company also holds the Hart Dolerite Project in the East Kimberley region of Western Australia.
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