Broken Hill Prospecting (BPL) has entered a joint venture with unlisted Australian mining investment company, Relentless Resources, to explore and develop heavy mineral sand (HMS) projects within two exploration licences in western New South Wales. The projects include HMS components titanium and zirconium.
BPL’s managing director Dr Ian Pringle says it is an excellent agreement for both parties because the funding will fast-track advanced evaluation of two very promising HMS prospects that are believed to have substantial grades of HMS. He said it also meant that funds raised recently in a share placement would be applied to progress work at three other HMS tenements held by BPL.
The agreement allows for formation of a joint venture to explore and establish JORC reserves and resources of HMS, complete feasibility studies and establish a viable HMS mining operation(s) at the two licences. Relentless will make staged payments totalling $2 million to earn a 50% participating interest.
A JV committee made up of both parties will oversee the JV. In its capacity as manager of the JV, Broken Hill Minerals (BHM), a 100%-owned subsidiary of BPL, will receive a service fee of 10% of JV expenditure.
BHM will apply the earn-in payments received from Relentless to complete a JORC 2012 resource and progress scoping studies on at least one of the two deposits within six months of commencing the JV and complete a feasibility study within 15 months.
Shallow air-core drilling is planned at both the Copi North Prospect and the Magic Prospect. The work is expected to commence in early February using a Wallis Drilling, light truck-mounted RC drill rig. It is anticipated that the drilling will take several weeks to complete. Drill samples will be tested for titanium and zirconium content and resource evaluations are planned for both prospects.