Junior explorer TechGen Metals (ASX:TG1) has signed an option and earn-in agreement with fellow explorer Narryer Metals (ASX:NYM) to earn an 85% interest in an exploration licence adjacent to its Narryer Project in Western Australia.
TechGen, which has a $4.63 million market capitalisation, reports exploration licence E20/1052 is underexplored and is prospective for nickel-copper-platinum group element (PGE) and rare earth element (REE) mineralisation.
Under the agreement, TechGen will pay Narryer Metals a non-refundable option fee of $10,000 for a 90-day option to enter the earn-in agreement. If it elects to enter the earn-in, TechGen will have the right to earn an 85% interest in E20/1052 by sole funding $450,000 worth of exploration over a 4-year period.
In the first stage of the earn-in, TechGen will earn a 60% interest in E20/1052 by spending $200,000 on exploration within 24 months. It can then earn a further 25% interest by spending another $250,000 on exploration within a subsequent 24-month period under the second stage.
Once TechGen earns an 85% interest in E20/1052, Narryer Metals can convert its remaining 15% interest into a 1% net smelter royalty (NSR) or contribute to joint venture (JV) exploration expenditure. Narryer Metals will also be free carried until a Prefeasibility Study (PFS) is completed.
Commenting on the agreement, TechGen Metals Managing Director Ashley Hood says: “We are delighted to have entered into this collaboration. The area holds immense promise, as it remains significantly underexplored, and we eagerly anticipate embarking on fieldwork to unlock its potential.
The project’s attraction lies in its possession of airborne magnetic features, and we believe it to be a highly prospective region for mafic-ultramafic-hosted nickel-copper-PGE mineralisation, similar to the Julimar-style deposits.
“This venture marks a strategic expansion of our critical minerals portfolio, aligning perfectly with Australia’s critical minerals strategy unveiled in June 2023″
This venture marks a strategic expansion of our critical minerals portfolio, aligning perfectly with Australia’s critical minerals strategy unveiled in June 2023. The national strategy serves as a guiding framework to foster the growth of Australia’s critical minerals sector, further underlining the importance and relevance of our latest undertaking.”
The Narryer Project lies within the Narryer Terrane on the edge of the Archean-aged Yilgarn Craton of Western Australia. TechGen says the region gains significance due to its association with the West Yilgarn Nickel-Copper-PGE Province, which spans 1,200km by 100km.
The project features airborne magnetic features that TechGen believes to be ‘highly prospective’ for mafic-ultramafic-hosted nickel-copper-PGE mineralisation similar to Chalice Mining’s (ASX:CHN) deposit.
TechGen says the initial phase of exploration at Narryer will consist of compiling and reviewing historical exploration data, alongside geological mapping and rock chip sampling.
TechGen Metals is a junior explorer that wields a portfolio of gold and base metals projects across 5 geological regions in Western Australia and the New England Orogen in New South Wales.
These assets include the Station Creek, Mt Boggola, Narryer, Cyclops, North Nifty, Harbutt Range, Earaheedy, Ida Valley, and El Donna projects in Western Australia, as well as the John Bull Project in New South Wales.
On 9 June 2023, the company announced it raised $900,000 through a placement to fund ongoing drilling and exploration activities at John Bull.
Write to Harry Mulholland at Mining.com.au
Images: TechGen Metals Ltd