Sentosa Mining intends to acquire the Darvii Naruu Copper-Gold Project in western Mongolia via the takeover of the project’s private Australian and Mongolian owners.
The 62,735 hectare Darvii Naruu site consists of seven contiguous licences in Mongolia’s Gobi-Altai province alongside Rio Tinto’s Oyu Tolgoi copper-gold porphyry deposit which is regarded as one of the world’s largest.
Under the acquisition agreement Sentosa will spend Aus$150,000 on a work program including an aeromagnetic and radiometric survey. The results of the survey work will determine whether Sentosa proceeds with the acquisition.
Historic exploration at the site has identified a flagship prospect named Mushroom Reef which has returned maximum rock chip values of 5.8% copper and 34.4 grams/tonne gold.
Sentosa’s executive chairman Nigel Gellard says, “The investment into Mongolia represents a unique platform to gain access to a recognized mining jurisdiction hosting numerous world class mineral deposits.
“Western Mongolia is vastly underexplored by modern exploration methods and the agreement presents Sentosa with an outstanding opportunity to potentially make a discovery of a large-scale mineral deposit.”
If Sentosa elects to proceed with the acquisition, it will issue 5.5 million fully paid ordinary shares and a 0.5% net smelter return royalty as consideration for a 100% interest in the tenements at Darvii Naruu.
The Mushroom Reef prospect shows similarities with Oyu Tolgoi, predominantly hosted by Devonian-aged mafic extrusive rocks. Enrichment of copper and gold in soil occur along linear corridors exceeding 3km in length.
The copper values in the soils range up to 354ppm and up to 126ppb gold. Sentosa says based on the elevated concentrations of copper and gold in soil and the depletion of other elements, it is possible that Mushroom Reef is prospective for a partially exposed, near-core position of a copper-gold porphyry system.