CuFe Ltd (ASX:CUF) has joined forces with two other Australian mining companies – Emmerson Resources Ltd (ASX:ERM) and Tennant Minerals Ltd (ASX:TMS) – to develop copper, gold and critical metals assets in the Tennant Creek region of Northern Territory.
Combined muscle
The partnership reflects a shift toward collaboration to overcome modern regulatory, environmental and financial challenges that have made independent, smaller-scale developments less viable.
Collectively, the companies control 7.3 million tonnes of mineral resources at average grades of 0.6 g/t gold and 1.7% copper.
By pooling resources, the companies can leverage the pooled assets while sharing costs.
CuFe executive director Mark Hancock said: “We are pleased to have signed a strategic alliance agreement to investigate the potential for a single multi-user processing facility for copper, gold and critical metals for our mineral resources and other recent high-grade exploration discoveries in the Tennant Creek region of the Northern Territory.
“With the historical high-grade Orlando and Gecko deposits, which produced over 127,500 tonnes of copper and 232,000 ounces of gold, the remaining mineral resources form the backbone of the alliance, while the ability to also leverage from the recent high-grade discoveries by Tennant Minerals and Emmerson in the region provides a unique development opportunity.”
Accelerated timelines, reduced costs
The aim of the alliance is to evaluate options for a shared multi-user processing facility with the potential to accelerate production timelines, reduce costs and enhance mineral development efficiencies.
The companies will conduct a comprehensive scoping study as a first step, reviewing optimal plant configurations, infrastructure, environmental and logistical requirements, and mine scheduling.
A strategic processing facility would support a hub-and-spoke model, centralising processing for multiple high-grade deposits in the Tennant Creek Mineral Field, a historically productive area for copper and gold.
Following the scoping study, the companies may undertake a pre-feasibility study to progress toward a fully operational facility.
The project is expected to commence activities in the fourth quarter of 2024, targeting a streamlined path to production and further exploration synergies in the Tennant Creek region.
Tennant Minerals managing director Vincent Algar said: “The production history of Tennant Creek copper and gold supports the shared facility model we plan to investigate in this collaboration.
“The strategy will provide a shorter pathway to production and incentivise TMS to continue its exploration effort targeting further discoveries like Bluebird on our tenements.”
Working together
Emmerson managing director Mike Dunbar said: “A number of the high-grade copper, gold and critical metals deposits in the Tennant Creek region start as relatively small-scale mines and grow significantly after mining commences.
“With modern environmental, regulatory and financial hurdles, development of these modest-sized deposits independently is now significantly harder than it was historically.
“As a result, a collaborative approach of working together with like-minded ASX-listed companies to investigate shared facilities to build the scale of operations needed for a modern development is, in my opinion, the best way of developing the field.
“I am pleased to be working with the Tennant Minerals and CuFe teams, as I believe this will lead to the best development option for each of the companies and the Tennant Creek community as a whole.”