Gateway Mining (ASX:GML) reports the farm-in agreement with ASX-listed exploration group SensOre (ASX:S3N) has been completed at the Montague Gold Project in Western Australia.
The company reports with all conditions precedent completed, SensOre is now able to start active lithium-focused exploration across the project. SensOre also has the right to acquire up to an 80% interest in the lithium rights within the Montague tenements.
The agreement was executed between Gateway, its wholly owned subsidiary Gateway Projects WA, and SensOre’s wholly owned subsidiary Exploration Ventures AI.
SensOre is a geoscience technology disruptor which plans to utilise the proprietary SensOre DPT artificial intelligence (AI) tool to generate targets within the tenements to explore for lithium. This exploration will be undertaken in parallel with Gateway’s ongoing gold exploration activities.
To date, no lithium exploration activities have been undertaken at the Montague Project.
SensOre has been required to spend an initial $1.5 million including a minimum of $750,000 in direct drilling expenditure to earn a 51% interest in the lithium rights within the tenements. The company also spent an additional $3 million including $1.5 million in direct drilling costs to earn an additional 29% interest in the lithium rights.
Gateway reports it will retain its existing rights to all other minerals within the tenements, including precious and base metals. The company will also retain the rights to clawback its interest in the lithium rights to 30% at its discretion at the completion of the earn-in period.
The company continues to actively explore the Montague Project for step-change gold discoveries, with the aim of ‘significantly’ increasing the existing 526,000 ounce mineral resources already defined at the project.
Gateway Mining is an ASX-listed mineral exploration company focused on delivering resource growth through new discoveries at its Montague Gold Project in the Murchison Region of Western Australia.
Montague comprises a consolidated area of about 1,000km-square covering the southern extensions of the Archaean-aged Gum Creek Greenstone Belt.
Images: Gateway Mining Ltd
