Evion Group (ASX:EVG) plans to re-assay stored drill samples for fluorine after securing an option over the Blue Nose property in Nevada, US.
The company signed a binding option and joint venture agreement with Reno-based industrial minerals company Infrastructure Materials (IMC).
Under the agreement, Evion can earn up to 75% of non-reserved minerals across the 40-claim property, located about 1.2km northwest of its Carp Fluorspar Project.
Once completed, Evion’s landholding will span 99 unpatented lode claims across about 829 hectares.
The historic Carp pit previously produced about 44,900 tonnes at roughly 69% calcium fluoride (CaF2) between 1958 and 1971, while recent surface sampling returned grades of up to 88.15% CaF2.
Between 2009 and 2010, IMC drilled 63 reverse circulation holes for 9,116.6m targeting limestone. Evion notes that more than 5,600 samples were never assayed for fluorine and remain stored in Reno.
Managing Director David Round says the stored material offers a ‘fast, low-cost’ test of the ground’s potential before spending on new drilling.
Consideration totals US$1.5 million ($2.13 million) in cash and 4 million Evion shares over two years, plus a US$30,000 due diligence payment. Evion will pay US$250,000 and 1 million shares at closing, US$350,000 and 1 million shares at year one, and US$900,000 and 2 million shares at year two.
IMC retains 25% of non-reserved minerals, all marble and limestone products, and can earn up to 25% of the Carp claims, free-carried to a Bankable Feasibility Study. The deal carries no minimum expenditure requirement and remains subject to due diligence within 60 days.
Evion Group is a critical minerals company focused on mining, exploring, and supplying graphite and fluorspar, with a mine-to-market supply chain across Madagascar, India, Europe, and the US.
Write to Paula Fabe at Mining.com.au
Main image: Evion Group
