Bulimba Project -
Tartana Resources Limited (Tartana or Company) has negotiated a sale and purchase agreement with Newcrest Mining Limited covering Newcrest’s tenements north of Chillagoe and which includes the following exploration permits:
- EPM 26530;
- EPM 26531;
- EPM 26532;
- EPM 25633;
- EPM 26738;
- EPM 26740
The EPMS cover more than 1250 km2 and would place Tartana Resources as one of the more significant explorers in the Chillagoe region based on tenure area.
Location of the Newcrest EPMs subject to the sale and purchase agreement. Source: GeoResGlobe.
Newcrest has completed airborne magnetic and radiometric geophysical survey, stream sediment sampling and gridded multi-element soil sampling across the Bulimba Project tenure. This has identified a number of targets requiring follow up exploration. This includes further work to determine whether elevated geochemical responses reflect anomalies in the basement rocks or overlying cover sediments.
Under the agreement, Tartana Resources can spend $336,000 on exploration and can then seek transfer of the EPMs to R3D at no cost. If an orebody is discovered which exceeds 1 million ounces Au Equivalent in JORC 2012 compliant resources, Newcrest can ‘claw back’ 75% of the project by paying Tartana three times its exploration expenditure at the date of the claw back. Otherwise, Newcrest will be entitled to a 1.5% or 2% NSR royalty on any future production from these tenements, with the royalty level reflecting whether the head grade of this future production is below or above 1 g/t Au Equivalents respectively.
Tartana Resources believes that the Newcrest transaction offers an attractive high risk – high reward exploration play with cover sediments making exploration difficult although airborne mag surveys indicate basement complexity. Tartana Resources is planning an airborne EM program to identify targets with follow up mapping and sampling prior to drill testing.