Australian Mines (ASX: AUZ) is acquiring a 60% interest in the Jumbulyer gold-copper project in Western Australia’s Murchison Goldfields district from Mount Magnet South (ASX: MUM).
Australian Mines is acquiring the interest by spending $1 million on exploration within an initial two year period.
It may then acquire a further 20% by spending an additional $2 million on exploration within the next two years.
Australian Mines will free carry Mount Magnet’ residual 20% interest in the project to completion of a Pre-Feasibility Study, at which point Mount Magnet may elect to contribute on a pro-rata basis or dilute their interest according to the standard industry formula.
Jumbulyer hosts the Foothills prospect where scout drilling – including a peak result of 16 metres at 6.6 grams per tonne gold from 9 metres - has defined a zone of gold mineralisation extending over a 100 metre strike length.
This structure is open along both strike and at depth.
Foothills also appears to be an emerging copper target with Mount Magnet recently mapping multiple outcrops of oxide and supergene copper mineralisation across this prospect.
Rock chip samples taken from these outcrops returned up to 18% copper with a subsequent reverse circulation drill hole in late 2012 intersecting 19 metres at 1.3% copper, 4.9g/t silver and 0.4g/t silver from 1 metre.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.