ASX-listed Red Hill Minerals has agreed to farm into and earn a 75% interest in the Curnamona project by spending A$6.5-million on exploration over five years.
The project, held by Peel’s Peel Far West subsidiary, comprises the Curnamona tenements in New South Wales and the Anabama tenements in South Australia.
In recent years, Peel has assembled a major land position in the Curnamona with the view that the prospective rocks have potential to host a tier-one deposit, akin to the giant Broken Hill lead/zinc/silver orebody. Previous limited historic drilling at the Curnamona tenements has intercepted occurrences of Broken Hill-type mineralisation, an indication of the potential that could be lurking beneath the cover.
The Anabama tenement in South Australia contains the underexplored namesake Anabama copper prospect and here Peel sees good potential for the discovery of a large-scale, near-surface copper deposit.
“We are very pleased to welcome Red Hill Minerals as our strategic partner to explore these highly prospective Broken Hill tenements, along with advancing a proven copper target at Anabama. We welcome Red Hill Minerals' willingness to make a substantial investment in exploration on these tenements with an aim of discovering a major mineral deposit,” said Peel technical director Rob Tyson.
The transaction is subject to a formal agreement consistent with the head of agreement, completion of a due diligence and renewal of tenement EL8877.