Austral Resources Australia (ASX:AR1) is taking advantage of its recent acquisition of the Rocklands processing facility by signing a non-binding memorandum understanding (MoU) with Metal Bank (ASX:MBK) for potential toll treating.
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The company executed binding agreements to acquire Copper Resources Australia, owner of the Rocklands copper mine and 3.0 million tonnes per annum (Mtpa) processing facility, last July as part of its North-West Queensland regional copper consolidation strategy.
Part of that strategy was an identification of the potential to toll treat a number of new copper developments being progressed in the region.
One of those opportunities happens to be Metal Bank and the advanced Millennium project.
Metal Bank is developing Millennium in a joint venture with diversified critical metals specialist Golbal Energy Metals Corp in the Cloncurry region.
The project has been assessed to have the potential to commence mining within two years, and notably that almost matches the proposed timing for a re-start of Rocklands.
Significantly, Millennium is located within 20km of the Rocklands facility.
Austral’s chairman, David Newling, said the alliance with Metal Bank is another strong endorsement of the North-West Queensland regional copper consolidation strategy.
“The strategy establishes Rocklands as a processing hub capable of servicing multiple regional ore sources, and importantly, demonstrates continued third-party interest in utilising Austral’s infrastructure footprint.
“We believe that the Millenium project is an attractive near-term feedstock for our Rocklands processing facility.
“Once again, this MoU reinforces that our infrastructure is strategically attractive and capable of unlocking value beyond our own deposits. Whilst technical work still needs to be completed, discussions to date have been constructive and supportive of a pathway that benefits shareholders and the broader Cloncurry region.”
Metal Bank’s CEO, Tim Gilbert, said there is upside value at Millennium.
“The opportunity to significantly increase the copper/cobalt resource with our recent mining lease application, our imminent move to 80% ownership of the project, and now the opportunity to work with Austral towards a processing solution, highlights that the Millennium project is a near term, valuable copper/cobalt project in the heart of NW Queensland.”
AR1 was down 4.65% at 10.3¢. Mkt cap $186.8M.
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