Green energy metals explorer Octava Minerals has entered into a farm-in joint venture agreement that enables fellow explorer Future Metals to earn up to 70 per cent in Octava’s Panton North and Copernicus North nickel, copper and platinum-group metals", or “PGM” projects in the East Kimberley.
Under the terms of the agreement, Future Metals may earn up to a 70% interest in both Panton North and Copernicus North by sole funding a minimum of $2 million in exploration and development over the next four years.
Octava will then be free-carried through to a "decision to mine" and will receive about $600,000 in Future Metals shares. For its part, Octava will be required to contribute to maintain its 30 per cent interest from the point of a decision to mine or dilute to a 1.5 per cent net smelter royalty.
Panton North and Copernicus North constitute Octava’s East Kimberley Project and are located in the Halls Creek Orogen – a Tier 1 nickel sulphide-PGM province. Both projects host ultramafic basal cumulates with strong nickel and copper geochemistry and with chonolith drill targets prospective for nickel sulphide and PGM mineralisation.
Panton North covers several nickel–copper and PGM prospective mafic-ultramafic intrusions and is located immediately north of the Panton PGM project that was acquired by Future Metals in June 2021 and covers extensions of the same stratigraphy.
The Panton PGM project contains a JORC-compliant mineral resource of 5 million ounces palladium, platinum and gold and 238,000 tonnes of nickel.
Octava says Panton North has only been sparsely tested by drilling and warrants more detailed assessment.
Copernicus North lies approximately 15km to the north-east of Panton North and close to the Copernicus nickel mine once mined by Panoramic Resources. Octava says it contains a gossanous and highly anomalous pyroxenite with a strong nickel and copper geochemical anomaly and is prospective for Copernicus-style mineralisation.
Geochemistry and aeromagnetic data show that there is a 2km potential strike of a ultramafic unit within the Tickalara Metamorphics – formed in the Kimberley almost 2 billion years ago and comprising a variety of metamorphic rocks.
Octava described the agreement as a great outcome for both companies.
Octava Minerals Managing Director, Bevan Wakelam said: “Octava expects to benefit from Future Metals’ expertise in nickel-copper platinum group metals sulphide exploration, together with its well-established infrastructure in the region, while the farm-in provides Future Metals with additional highly prospective ground immediately adjacent to their significant JORC Mineral Resource.”
“This agreement allows Octava to maintain its focus firmly on its key Talga lithium project in the Pilbara.”
Talga covers some 211 sq km of land about 30km to the north-west of Marble Bar, in the East Pilbara. It comprises eight exploration licences; Octava owns two and is farming-in up to 80 per cent the other six, held by ASX-listed First Au.
Octava believes Talga has potential for lithium-caesium tantalum pegmatites. Not only is the project close to the Archer lithium deposit, with 105 million tonnes at 1 per cent lithium oxide, but previous reconnaissance exploration at the Pinnacle Well prospect within Talga has identified pegmatite and a rock chip has returned 0.22 per cent lithium oxide.
With interest in green metals exploration showing little signs of abating, there is plenty to keep ambitious explorers like Octava and Future Metals busy in 2023 and beyond – on their own or in mutually beneficial joint ventures.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
