South32 to invest $6m in Superior Resources to open up Queensland’s Carpentaria Zinc Province
- Superior Resources (ASX:SPQ) announced today the signing of an earn-in and joint venture (JV) agreement with global miner South32 to advance exploration of the Company’s 100%-owned Nicholson Project in north-west Queensland.
- Under Stage 1 of the “Hedleys Joint Venture”, South32 must fully fund an initial $2 million or 4,000m of drilling within the first 12 months of operations, with funding to commence immediately. South32 may elect to proceed to Stage 2 by sole-funding a further $4 million on exploration within the following four years to earn a 70% interest in the project.
- Superior will be the JV operator during Stages 1 and 2 of JV operations.
Superior’s Managing Director, Peter Hwang said he was looking forward to advancing Nicholson, a project located
within the globally attractive Carpentaria Zinc Province, which contains around 20 percent of the world’s zinc
“The initial exploration program is targeting up to three Tier 1 equivalent, drill-ready Mount Isa style lead-zinc-silver targets, which we believe could be similar in size to the McArthur River and Century deposits,” Mr Hwang said.
“The earn-in and JV agreement with South32 is a significant milestone for Superior’s lead-zinc strategy. It validates
the potential of the project to host a world-class base metals deposit and ensures that we will be fully funded to
complete the substantial drilling program within the first year of the JV. We believe that there are few peer stocks
on the ASX with such an exposure to entry-level Tier 1 lead-zinc-silver projects,” he said.
The Nicholson Project is located 250km south-east of the MacArthur River Mine and 110km north-north-west of the
Century Mine. At least five large geophysical targets have been identified with only one target previously being
subjected to exploration drilling.
Mr Hwang said drilling is expected to commence shortly after the completion of an aboriginal cultural heritage
survey, scheduled to be conducted during early June 2019.
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