Comet Resources Ltd (ASX:CRL) is getting ready to obtain all permits for exploration at the Barraba Copper Project in NSW, following a favourable decision by the National Native Title Tribunal (NNTT).
Drilling for exploration is set to commence in the third quarter of this year in the wake of the positive outcome.
Action initiated by company
Comet had been unable to negotiate access to this land for more than 12 months, so it had no choice but to file an action with the NNTT to find a resolution.
The tribunal ruled in favour of the ASX-listed gold and base metals explorer in this matter and has imposed no further conditions for access.
Consequently, the company is able to complete permitting for its exploration activities in this area with the NSW government.
The NNTT approval frees Comet up to proceed with exploration at the historic copper project in the New England Fold Belt region, NSW.
Of the 2,375-hectare exploration license that covers the project area, EL8492 is located near the town of Barraba, approximately 550 kilometres north of Sydney
The Barraba Copper Project sits along the Peel Fault line and encompasses the historic Gulf Creek and Murchison copper mines. The region is known to host volcanogenic massive sulphide (VMS)-style mineralisation containing copper, zinc, lead and precious metals.
Rig availability
In order to secure rig availability, Comet Resources' geological team in NSW is currently in discussion with drilling service providers about the possibility of drilling off the historic Gulf Creek Mine.
It is anticipated that drilling will commence in the third quarter of this year.
The initial exploration program will include drill testing of areas below the historically identified deposits, plus high-level exploration targets delineated by an induced polarisation (IP) survey over parts of the license area that were never followed up.
Amendment reached
Further, there was an agreement reached between the company and the vendors to amend a key clause in the acquisition agreement for the Barraba Copper Project, which related to the requirement to meet a minimum expenditure condition on exploration within 18 months (as compared to the earlier 12 months) of the date of the original transaction.
The minimum expenditure condition states that the company must spend a total amount of not less than $600,000 (excluding GST) on direct, 'in-ground' exploration activities within the tenement area, which includes drilling a minimum of 1,250 metres of diamond or reverse circulation drilling.
As detailed in the announcements on January 23, 2020, and April 16, 2020, the key term of the acquisition for the Barraba Copper Project has been varied.
"Within 12 months after the date of the favourable ruling by the NNTT, which takes place on March 31, 2022, the purchaser must satisfy the minimum expenditure condition on approved exploration expenditure, including the minimum drilling requirement, thereby allowing the purchaser until March 31, 2023, to fulfil its obligations under clause 8 of the agreement," the company stated on Monday.
The duration of the minimum expenditure condition on exploration has now been amended to 18 months.
Modern exploration methods have not been used to test systematically a large part of the project area, according to the company.
Freehold land makes up most of Comet's project area, which means that exploration work, including drilling, can now be carried out at full speed.
- Amrita Ghaswalla