Olympio Metals (ASX:OLY) is putting permitting in place to conduct drilling across the Dufay Copper-Gold Project, after signing an option agreement to acquire 80% of the project from private vendors.
The Dufay project sits on the Cadillac-Lake Larder Fault Zone, also known as the Cadillac Break, in Canada. Several rock chip samples from within the project have returned up to 7.66% copper and 6.78% copper.
Under the agreement, Olympio will pay C$75,000 ($82,114) cash and issue 1 million shares to the vendors.
The company will spend C$250,000 on exploration in the first year after signing the agreement, as well as pay C$75,000 in cash and issue 1 million shares to take its ownership to 30%.
Once completed, Olympio will spend an additional C$250,000 on exploration in the second year after signing, pay C$125,000 cash and issue 2 million shares to take its ownership to 49%.
To take its ownership to 80%, the company will spend another C$250,000 on exploration within 36 months, pay C$200,000 cash and issue an additional 2 million shares.The vendors will be free carried to a completion of a Bankable Feasibility Study.
Following yesterday’s (19 November) announcement, Olympio’s share price spiked 64.7% to $0.056 as of 2.45pm AEDT.
The company intends to drill test three prospects within the Dufay Project and has proposed further exploration work to potentially uncover new drill targets.
This work will include a 40km2 detailed heli-magnetic survey over the northern half of Dufay, further field mapping and rock chip sampling, ground induced polarisation and electromagnetic surveying of selected follow-up targets, and data integration and interpretation to develop drill targets.
Managing Director Sean Delaney says the project offers the company “significant” strike exposure to one of the world’s premier mineralised structures, Cadillac Break.
“The project offers a range of underexplored exploration targets, including high-grade copper showings that have never been drilled and compelling porphyry copper-gold geophysical targets that remain untested,” Delaney says.
“The project has significant potential to host porphyry copper-gold mineralisation, with exploration drilling planned to commence during the upcoming Canadian winter field season.”
Dufay covers 60km2 of tenure and 10km of strike of the Cadillac Break.
Meanwhile, the company notes it has elected not to exercise the option over the Cadillac Lithium Project in Québec, Canada, based on the downturn in sentiment of the lithium exploration industry.
As a result, Olympio will not make the final payment to Vision Lithium (TSX-V:VLI).
Olympio Metals is an Australian explorer focused on the discovery and development of critical mineral projects in Australia and Canada.
Write to Aaliyah Rogan at Mining.com.au
Images: Olympio Metals
