Resource Mining Corporation (ASX:RMI) has snapped up 2 copper-gold projects covering 1,580km-square in Tanzania’s Ubendian Orogenic Belt through a joint venture (JV) deal with Vancouver Mineral Resources (VMR).
Through the arrangement, Resource Mining will take control of the Mpanda and Mbozi projects. The company already owns 6 nickel-copper project areas within the same belt upon which these 2 new projects lie.
Under the deal, Resource Mining will be issued 75% of the issued shares in VMR — which is based in Tanzania — in return for sole-funding exploration and development at the new projects through to the completion of a feasibility study.
VMR will also be granted a 1% net smelter royalty on all copper, gold, and any other by-product or co-product materials mined in the areas.
Once a Feasibility Study has been completed, Resource Mining’s sole funding obligation will cease, and the two parties will then enter into talks regarding the further development and funding of the projects.
Resource Mining Executive Chairman Asimwe Kabunga says the company plans to develop the new projects in parallel with its current nickel-copper assets.
“The new projects are placed along-strike from some of the most significant copper-gold discoveries in Tanzania, and recent fieldwork has already found major anomalies along-strike and within appropriate geology.
The advantage held by our in-country knowledge and experienced staff can now be fully utilised as we expand our exploration base and continue to explore for major critical mineral deposits.”
“The advantage held by our in-country knowledge and experienced staff can now be fully utilised as we expand our exploration base and continue to explore for major critical mineral deposits”
Together, the Mpanda and Mbozi projects comprise 11 granted tenements.
The Mpanda project is made up of the Mpanda and Karema prospects, and previous exploration has identified both of these prospects as being home to either mapped ore zones or large soil copper anomalies.
While historical work is ‘limited’, according to Resource Mining, the prospects lie within a mining region that is currently active and has a record of ‘very high grades’ of copper and gold.
Meanwhile, the Mbozi project is aligned with several ‘major’ resources in the Lupa goldfield that contain both gold and copper.
Resource Mining says VMR has identified soil anomalies in this area that require further study ahead of drilling and development.
Resource Mining Corporation’s project portfolio comprises a string of nickel and lithium assets across Tanzania and Finland.
The company had around $664,000 cash and cash equivalents at hand at the end of December 2023, according to its latest quarterly report.
Write to Joshua Smith at Mining.com.au
Images: Resource Mining Corporation
