- Carawine Resources (CWX) and Fortescue Metals (FMG) have agreed to include the Eider tenement in the Coolbro joint venture agreement (JVA)
- Fortescue has agreed to complete an airborne geophysical survey and drilling program before it can earn an interest in the tenements
- In the amended agreement, the iron ore company will pay Carawine $50,000 in cash within 30 days of executing the amended agreement
- Fortescue has the right to earn a 51 per cent interest in the joint venture tenement by spending a further $100,000 on exploration
- Exploration will include a helicopter electromagnetic survey and a drilling program
- Carawine is currently trading flat for 26 cents while Fortescue is down 0.18 per cent, trading at $16.20
Gold and base metals explorer Carawine Resources (CWX) has amended the Coolbro joint venture agreement with Fortescue Metals Group (FMG) to include the Eider tenement.
Eider is around 35 kilometres southwest of the Telfer gold mine, which is owned by the major ASX-listed gold explorer, Newcrest Mining (NCM), in Western Australia.
Fortescue has agreed to complete an airborne geophysical survey and drilling program before it can earn an interest in the tenements.
The iron ore company will pay Carawine $50,000 in cash within 30 days of executing the amended agreement. Fortescue has the right to earn a 51 per cent interest in the joint venture tenement by spending a further $100,000 on exploration.
Before earning a 51 per cent interest in Eider, Fortescue must complete a helicopter electromagnetic survey of a minimum of 60-line kilometres and at least 1000 metres of drilling at the tenement.
Carawine Managing Director, David Boyd, says this addition to the joint venture will maximise the discovery at Eider, as it is adjacent to exploration licences already held by Fortescue.
“Although at an early exploration stage, Eider has an excellent address and is considered highly prospective,” he said.
“The first stage of Fortescue’s exploration program is expected to commence soon, with Fortescue indicating its intention to include the tenement in upcoming Heli-EM surveys planned over the Coolbro JVA tenements, expected to commence during the third and fourth quarters of 2020,” he added.
Patersons Project
Carawine has also updated the market on its Patersons Project, which also lies near to the world-class Telfer Gold Project.
Patersons includes nine granted exploration licences and seven exploration licence applications.
Its tenements, Baton and Red Dog, are a part of the Rio Tinto joint venture. Rio Tinto Exploration (RTX) is a subsidiary of iron ore giant, Rio Tinto (RIO).
RTX has the right to earn up to 80 per cent in Boston and Red Dog. To earn 70 per cent, RTX will need to spend $5.5 million on the tenements within six years.
Mobilisation of a drill rig was expected to occur in late August with the drill program conducted through September. However, RTX has advised Carawine that the program has been delayed.
RTX is now expecting to commence the program once the drill rig becomes available in the fourth quarter of 2020.
On the market this morning, Carawine is trading flat for 26 cents while Fortescue is down 0.18 per cent, trading at $16.20 at 11:10 am AEST.