Minotaur Exploration (ASX: MEP) subsidiary Demetallica Pty Ltd (formerly Breakaway Resources) and OZ Minerals Ltd (ASX: OZL) have agreed to transfer ownership of the Jericho and Eloise projects near Cloncurry, Queensland to Demetallica.
Currently, Jericho JV interests are disposed 80/20 as to OZL/MEP and Eloise JV interests are arranged 70/30 as to OZL/MEP.
Chimera Polymetal Project
The transaction will result in the Jericho JV (28.5km2) and Eloise JV (817km2) tenements becoming 100% owned by Demetallica. Consolidation of tenement ownership in Demetallica is a logical and preferable outcome for both OZ Minerals and Minotaur, enabling Demetallica to pursue discovery objectives and its growth ambitions. Separately, Sandfire Resource's (ASX: SFR) regional tenements and the Altia polymetallic deposit1 are in transition to Demetallica 100%. Demetallica will thereby compile a strategic tenement position - named the Chimera Polymetal Project (Ky-mee-ra) in the region surrounding the Eloise copper operation.
The Chimera Polymetal Project is interspersed with several quality deposits; the Jericho copper-gold deposit its nexus. Published resource inventories are: Jericho and Sandy Creek copper-gold deposits, of 11.1Mt @ 1.39% Cu and 0.3g/t Au the Altia resource2 of 5.8Mt @ 4% Pb, 0.5% Zn Andrew Woskett, Managing Director, said 'this transaction injects a cornerstone asset into Demetallica's proposed IPO.
With all Minotaur's non-kaolin assets transferring into Demetallica the new business will be boosted by full ownership of the Chimera Polymetal Project. 2022 will be a formative year for Minotaur shareholders participating in the new explorer, Demetallica, through their in-specie distribution of shares'.
Objectives for Jericho Copper-Gold Resource
Demetallica considers the Jericho deposit to be especially worthy of a renewed exploration effort. Under Demetallica's stewardship Jericho will be actively drilled, aiming for significant resource improvements and elevation to pre-development status.
Through calendar 2022 Demetallica intends to resume resource drilling to build inventory and form the basis for an upgraded JORC resource estimate. Demetallica envisages the Jericho orebody is the hub of mine developments across the Chimera Polymetal Project, advancing the company towards developer and producer status
Jericho Copper-Gold Resource
A JORC 2012 resource estimate by OZ Minerals was published by Minotaur Exploration in July 20203 and remains valid with no material changes noted within the data. The Inferred Mineral Resource was reported as 9.1 million tonnes grading 1.4% Cu, 0.3 g/t Au and 1.6 g/t Ag within an 0.8% copper constraining shell. Jericho mineralisation is primarily hosted within two main parallel lodes (J1 and J2) approximately 120 meters apart along +3.5km of strike length, dips steeply west and is open along strike and at depth. The published resource encompasses only 2km of strike through the central portions of J1 and J2 lodes, with the remainder of the mineralised zone remaining unclassified.
Jericho Resource Growth
Potential 30km of diamond drilling at Jericho was completed up to July 2019. With the benefit of the drill data base Minotaur refined its geological interpretation of Jericho, giving greater confidence in the geological model and a better understanding of the structural controls on mineralisation. Mineralisation remains open along strike and down dip on both lodes and Demetallica sees strong potential to expand the resource through further drilling. The most coherent higher-grade mineralisation occurs within structural zones comprising the Matilda and Jumbuck shoots within J1 lode and in the Billabong shoot within J2 lode. These areas of the deposit will be Demetallica's focus of drilling in 2022, aimed at both growing the resource down-plunge and infill drilling shallower parts of the deposit to increase drill density and hence resource confidence ahead of a resource upgrade.
Sandy Creek Copper-Gold Resource
The Sandy Creek Cu-Au deposit has a published JORC 2012 Inferred Mineral Resource estimate of 2Mt @ 1.32% Cu, 0.3g/t Au at 0.3% Cu cut-off as reported4 in 2013 by Breakaway Resources Ltd. The resource estimate remains valid with no material changes noted within the data. Sandy Creek is situated about 20km west of Jericho and presents as a readily accessible sub-cropping deposit that may have shallow open-pit mining potential.
Altia Lead-Silver-Zinc Resource
The Altia Pb-Ag-Zn deposit has a published JORC 2004 Inferred Mineral Resource estimate of 5.78Mt @ 3.96% Pb, 40.3g/t Ag and 0.49% Zn at 0% Pb cut-off. The resource estimate remains valid with no material changes noted within the data, however Demetallica is intending to update the Resource to JORC 2012 early in 2022. Demetallica considers Altia a strategic asset, well located 2km west of the Jericho copper-gold project within granted mineral development licences
About Demetallica
On 3 December 2021 Andromeda Metals Ltd (ASX: ADN) published its Bidder's Statement in relation to an all-scrip Offer to purchase at least 90% of Minotaur's issued capital. Minotaur's Target's Statement was published at the same time on the ASX platform. Demetallica is presently a wholly owned subsidiary of Minotaur. A pre-condition of the Offer becoming effective is that Minotaur's shareholders will approve the proposal to 'demerge' its non-kaolin assets into Demetallica at a meeting to be held on 20 January 2022. Approval of the demerger will result in Minotaur shareholders being allotted pro-rata in-specie shares in Demetallica and will enable Demetallica to prepare an Initital Public Offer (IPO) Prospectus and lodge an application with ASX for Demetallica to be admitted to the ASX official list, expected to occur early in April 2022. A successful IPO will place Demetallica in sufficient funds to meet its transaction payment obligations to OZ Minerals and for working capital requirements. Futher information on Demetallica and the proposed demerger will be provided in the Notice of Meeting to be despatched to Minotaur shareholders mid December 2021. Demetallica will, effectively, continue the copper-gold exploration agenda successfully pursued by Minotaur over the past decade, with continuation of management and Board oversight. Demetallica's portfolio will comprise all non-kaolin assets of Minotaur.
FORWARD-LOOKING STATEMENTS
This ASX Release contains certain 'forward-looking statements' based on forward-looking information that is subject to a number of known and unknown risks, uncertainties and other factors that may cause outcomes to differ materially from those presented here. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and considered to have a reasonable basis. Readers should not place reliance on forward-looking statements. The Company has no obligation to publicly revise any forward-looking statement to reflect events or circumstances after the date of this ASX Release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
Contact:
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