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Strategic Energy Resources (ASX:SER) has bought a copper-gold project in western Queensland, paying London-listed Anglo American cash and scrip for a new exploration frontier 280 kilometres south of Cloncurry.
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Strategic’s new Diamantina project is south of the “extensively mineralised” Mount Isa Islier and comes with two exploration licences; three more are in the works.
The Queensland explorer was drawn to the cash and scrip pickup because geological and structural interpretation of geophysical datasets have shown Proterozoic sequences running south along the Pilgram Fault under younger rocks.
“It is our belief that undercover extensions both north and south are the next frontier in major mineral discoveries [in the area],” Strategic’s managing director, David DeTata, explained after unveiling the buy.
Strategic was invited to bid on the area this year and jumped at the consolidation opportunity. “[We have] already secured the northern extensions with our Isa North and Canobie Projects, and with the acquisition of Diamantina and the surrounding ground, we now control the southern extension.”
The new owners will now look to build on reviews and datasets banked by both Ango American and an older owner, Red Metal Limited, in recent years.
“This announcement is the first public release of the exploration undertaken by Anglo American at Diamantina, with the limited drilling to date returning significant copper and gold intercepts,” Dr DeTata explained.
“Numerous geophysical targets remain untested across the greater project area.”
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While Strategic Energy carries 100% ownership of the Diamantina project after this July sale, London’s Anglo American still holds some ongoing control as the newest SER shareholder through the cash and scrip deal.
It’s unlikely there’ll be oversight, though – Strategic and Anglo-American are aligned in their ambitions to “find Australia’s next major copper-gold discovery.”
“Now, we can begin unlocking the potential in Diamantina,” Dr DeTata declared.
SER has been relatively flat this Friday; shares are at 0.7c at lunchtime.
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