Gold and copper explorer Orange Minerals (ASX:OMX) has executed a binding terms sheet for a farm-in joint venture (JV) agreement with Musketeer Mining to acquire a 75% share in the Lennon’s Find Polymetallic Project in Western Australia.
The company says the project, which currently holds a mining lease with an inferred Mineral Resource Estimate (MRE) of 1.55 million tonnes (Mt) at 5.9% zinc (Zn), 0.2% copper (Cu), 1.6% lead (Pb), 0.28 grams per tonne (g/t) gold (Au), and 84g/t silver (Ag), demonstrates ‘significant’ untested exploration targets which exist below and adjacent to the resource.
Speaking to Mining.com.au, Managing Director David Greenwood says it’s the company’s first move into the Pilbara and when the Lennon’s Find opportunity came up it was deemed too good to pass up.
Orange Minerals reports the project also hosts a ‘strong’ untested chargeability anomaly at depth beneath the drill defined Hammerhead zone of mineralisation, which was uncovered from a historical induced polarisation (IP) survey.
Exploration at the project will focus on testing the ‘advanced’ and ‘drill ready’ targets, as well as testing ‘strong’ geophysical anomalies. It is Orange’s hope to increase the resource base at the project.
Under the agreement, Orange has the opportunity to earn 51% of the project by spending $500,000 by 31 March 2026, including an upfront payment of $200,000, and spending a minimum of $200,000 on exploration at the project by 31 January 2025.
Other terms include Orange earning a 75% interest in the project by spending an additional $500,000 by 31 March 2028. If Orange achieves this milestone, it is reported both parties will contribute expenditure to the JV, with standard dilution clauses applying.
The company also notes it plans to fund this acquisition, as well as exploration, from existing cash reserves. The company had $2.86 million cash at hand as of 30 June 2023, according to its latest quarterly report.
Orange Minerals is an ASX-listed explorer with a portfolio of Australian-based projects in the world-class mineral provinces of Lachlan Fold Belt of New South Wales and Eastern Goldfields of Western Australia.
The Lennon’s Find project is located about 75km southeast of the township of Marble Bar in the Pilbara region of Western Australia and hosts 3 key prospects identified from prior exploration.
Write to Adam Drought at Mining.com.au
Images: Orange Minerals NL
