Boadicea Resources Ltd (ASX:BOA) is watching keenly as IGO Newsearch Pty Ltd, a wholly-owned subsidiary of IGO Ltd (ASX:IGO), begins exploration across the Fraser Range tenements that form part of a conditional sale agreement between the companies.
IGO has identified three high-priority targets adjacent to the Symons Hill licence in the Fraser Range, which forms the basis of an exploration program and is northeast of IGO's Nova mine.
Consequently, the major Fraser Range nickel producer has identified the possibility of diamond drilling as early as next quarter to test for an extension of its Orion prospect.
IGO is targeting prospects which are interpreted to extend into BOA’s Symons Hill licence, including Orion, Hercules and Elara prospects.
“Exciting phase of nickel exploration”
Boadicea managing director Jon Reynolds said: “The agreement between Boadicea and IGO has the potential to deliver significant value to BOA shareholders through the IGO exploration expertise, knowledge and 100% funding of activities within the Boadicea tenements.
“The work program proposed by IGO, highlighted by the culmination of diamond drilling, is the first step in this exciting phase of nickel exploration within the BOA Fraser Range assets.
“We look forward to presenting the results of the geophysics and drilling as soon as they become available.”
Agreement with IGO
IGO has a five-year exclusive access and exploration rights to the following Boadicea Fraser Range tenements:
- E28/1932: Symons Hill;
- E39/2148: Giles;
- E28/2721: White Knight;
- E28/2849: Transline North;
- E28/2866: Transline South;
- E28/2888: Transline West (1);
- E28/2895: Transline West (2);
- E28/2937: South Plumridge; and
- E28/2952:Giles South.
Fraser Range tenements.
Symons Hill targets
From September 4, 2020, IGO has had exclusive exploration access to the Symons Hill tenement.
IGO has developed an exploration program focused on testing for potential extensions to the Orion, Hercules, and Elara prospects that are interpreted to extend into BOA’s Symons Hill licence.
The Orion and Hercules prospects are on the boundary of the Nova and Symons Hill licence and provide high-priority targets.
Possible extensions to the targets within the BOA licence form the basis of the proposed exploration program, which includes:
- Completion of heritage survey, which may be aided by BOA’s previous surveys;
- A program of work to be lodged in November with the Department of Mines, Industry Regulation and Safety;
- Ground clearing and completion of MLEM geophysical surveying using a low-temperature SQUID sensor in quarter one of 2021; and
- Potential for extensive diamond drilling, possibly in quarter two of 2021, as a follow-up of the geophysics.
IGO is also completing an evaluation and interpretation of the additional tenements that form part of the agreement between IGO and Boadicea but this remains preliminary in nature.
Upon IGO declaring a JORC resource within the five year exclusivity period:
- BOA will sell and transfer, and IGO will purchase, the Fraser Range Assets upon the payment of $50,000,000 cash; and
- IGO will grant to the company a Net Smelter Royalty of 0.75% on all revenues from the Fraser Range Assets.