Trek Metals (ASX: TKM) has executed a farm-in and joint venture Agreement with Buxton Resources (ASX: BUX) covering the Centurion IOCG Project, located in Western Australia’s Great Sandy Desert.
The deal will see Trek earn up to a 75% interest in Centurion, which encompasses a ‘high-quality’ Iron Oxide Copper Gold (IOCG) exploration target, and represents a unique, walk-up drilling opportunity in a frontier mineral province.
Trek said that the agreement adds an exciting, high-impact exploration opportunity to its portfolio, further strengthening its Australian exploration pipeline.
Commenting on the Agreement, Trek Metals Chief Executive Officer Derek Marshall said: “It’s rare to come across a walk-up drilling opportunity of this scale and quality in a frontier exploration terrane with genuine potential to deliver a game-changing Tier-1 discovery. We are absolutely delighted to have secured this opportunity through a Farm-In and Joint Venture Agreement with Buxton Resources over their Centurion Project.
“It’s rare to come across a walk-up drilling opportunity of this scale and quality in a frontier exploration terrane with genuine potential to deliver a game-changing Tier-1 discovery”
The agreement is structured in a way that gives us the ability to evaluate this world-class opportunity for a relatively modest outlay, being the estimated cost of a deep diamond drill program. If we are successful, it would be a transformational result for both parties.
My previous experience at the large-scale intrusion-related Havieron Cu-Au Project, and the experience of others in our team, will be invaluable as we move forward to test this world-class exploration opportunity.”
The IOCG target comprises a 3.5km by 5km magnetic anomaly, with results from an airborne gravity gradiometer survey revealing a coincident gravity high in a slightly offset position. Trek believes that this is a ‘characteristic’ signature of large-scale Tier-1 IOCG deposits such as Olympic Dam and Prominent Hill in South Australia.
Centurion Project with magnetics, airborne gravity contours and seismic linesDuring Stage 1 of the JV, Trek will be required to drill test the Centurion target within 21 months of signing, and cover all drilling costs which are budgeted at $500,000.
Upon completion of Stage 1, Trek may elect to withdraw from the JV or will have earned a 51% interest in the project.
Pending positive results, Trek may elect to proceed to Stage 2, which would require a further $3 million spend over 3 years to progress to a 75% interest.
The Centurion Project comprises granted Exploration Licence E80/5579 located on unclaimed crown land approximately 400km south of Halls Creek.
Trek notes that it intends to fast-track its assessment of the IOCG opportunity by drilling a single deep parent diamond drill hole, together with a proposed W1 daughter hole.
The company said that the drilling will commence as soon as practicable, subject to drill rig availability, permitting, and access.
To complement this opportunity, Trek has also applied for additional tenure surrounding and in close proximity to the Centurion target.
Images: Trek Metals Limited
