One of the world’s largest mineral producers is exiting a new metal development in North West Queensland’s Gulf Country region.
Newcrest Mining has accepted a bid from Strategic Energy Resources (SER) for the Isa North Copper-Gold Project, about 20km north of Mount Isa.
The deal sees SER acquire 100 per cent of exploration licences EPM26439, EPM26442 and EPM26440 from Newcrest, which will retain the first right of refusal for any future transaction on the project.
Newcrest will receive a 1 per cent net smelter royalty for the first 10 years of production. It will also have access to technical data on the project.
The area, which spans 976 sq km in the under-explored part of the Western Fold Belt, is touted to be very promising for iron oxide copper-gold (IOCG) mineralisation.
“The project, which formed part of Newcrest’s undercover strategy, has multiple favourable geological characteristics which make it highly prospective for IOCG mineralisation including: A major mineralised fault zone, evidence of extensive hydrothermal alteration undercover, and numerous significant magnetic and gravity anomalies,” SER said in a public statement.
“The project area is located along the projected northern extension of the mineralised Mt Isa – Gunpowder Fault Zone. Several large deposits lie on or adjacent to this fault system, including the Mt Isa, Mt Oxide and Gunpowder copper deposits and the Mt Isa, Hilton and George Fisher lead-zinc-silver deposits.”
If the transaction proceeds as planned, SER will begin negotiating land access while refining drill targets. The buyer will also closely monitor Red Metal’s and OZ Minerals’ drilling activity at Gibson’s Tank.
“Drilling at Isa North will not occur until after our upcoming drill programs at East Tennant and Canobie,” SER said.