Rumble Resources (ASX:RTR) has signed an earn in agreement with Blackham Resources (ASX:BLK) to acquire up to 75% of the Zanthus Project located within in the Albany Fraser Tectonic Zone, Western Australia.
The Zanthus project is situated 18 kilometres east of the Nova Nickel Copper massive sulphide discovery by Sirius Resources (ASX: SIR).
The transaction has repositioned Rumble as a major player in the Fraser Range nickel province with 796 square kilometres of ground prospective for nickel-copper massive sulphides.
The Zanthus Project has previously been explored for lignite coal, however very little base and precious metal exploration has been conducted to date, especially into the basement.
ACQUISITION TERMS
Rumble has agreed to acquire all the basement mineral rights at Zanthus, excluding coal and mineral sands within the sedimentary cover sequences.
To acquire an initial 20% initial interest, Rumble will issue Blackham 2 million shares, moving to 50% interest via exploration expenditure of $1 million over the first 2 years of the venture.
Upon meeting the 50% interest, Rumble will pay Blackham $250,000, as 30% cash and 70% Rumble shares.
In order to move to a 75% interest, Rumble must spend an additional $1.5 million during years 3 and 4; and upon meeting the 75% interest, Rumble is pay an additional $500,000 to Blackham, again as 30% cash and 70% Rumble shares.
Blackham will be free carried to completion of a bankable feasibility study in relation to the project.
If Blackham decides not to contribute in proportion to its interest, its interest will dilute to a minimum 10% before reverting to a 2% net smelter royalty.
PROJECT GEOLOGY
Strongly magnetic zones have been defined via aeromagnetic data, especially in the central region of the project area, and are interpreted as potential mafic and ultramafic units.
These magnetic horizons also indicate potentially prospective structural features including dilation zones and fault offsets.
Historic drilling by Sabminco in 1993 indicated anomalous gold and platinum group values, up to 2m at 150ppb gold, 4.19ppb palladium and 15.4ppb platinum from 55 metres depth.
From past drilling the basement is interpreted to be between 20 metres and 55 metres below surface.
Rumble plans to systematically explore the Zanthus Project, looking to generate further high priority nickel and copper sulphide targets.
Rumble last week revealed that they had discovered one of the largest bedrock electromagnetic conductors in the Fraser Range, highlighting Rumble's technical competence in this area of exploration.
Rumble remains one of the lowest market cap nickel copper explorers in the Fraser Range, valued at around $2 million.
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