re: Ann: Argo enters into Farm-in Joint Ventu...
Argo farms out Intercept Hill to Xstrata
Sydney - Tuesday - March 16: (RWE Australian Business News) - Argo Exploration Ltd (AXT) has entered a binding agreement with Xstrata Mount Isa Mines Ltd to form an exploration farm-in and joint venture fast-tracking exploration of its 100pc-owned Intercept Hill tenement in South Australia.
The agreement is in two stages - Stage One grants Xstrata the opportunity to earn a 51pc interest in Intercept Hill EL4164 by expending $4m within 3.5 years; Stage Two allows Xstrata Copper to earn an additional 24pc (to take its interest to 75pc) by expending a further $12m within a further four years; expenditures may be brought forward.
Exploration by Argo has confirmed the presence of fertile IOCG systems within its Intercept Hill tenement, about 20km east of Woomera and 25km west-northwest from the Teck Australia and RMG Services Carrapateena project on the Stuart Shelf.
The tenement is centrally located in the Olympic Dam Iron Oxide Cu-Au-U Province at the centre of a cluster of iron oxide copper occurrences.
The Intercept Hill tenement covers a total area of 423 sq km of quality tenure considered highly prospective for the delineation of iron oxide copper-gold-uranium, stratabound copper-lead-zinc, secondary uranium and lode gold mineralisation.
Based on geophysical surveys, previous drilling and structural interpretations completed by Argo, a number of high-priority prospective targets have been identified within the Intercept Hill tenement.
Xstrata plans to start work on the project immediately and, under the terms of the agreement, is committed to drill at least one hole to test a basement target in the first year
AXT Price at posting:
8.0¢ Sentiment: None Disclosure: Held
