PriceSensitive

Tao Commodities (ASX:TAO) increases holdings at U.S. HMS project

Mining
ASX:TAO
09 December 2020 15:45 (AEST)

Source: Tao Commodities

Tao Commodities (TAO) has increased its land holding at the Titan heavy mineral sands (HMS) project in Tennessee by over 40 per cent.

New options

Tao has entered into land option agreements with landowners around its current holdings, covering 900 acres of prospective territory.

The project now comprises around 3000 acres of the McNairy Sands geological formation, which is highly prospective for zircon and titanium.

The additional land packages have been the focus of Tao’s phase one and two drilling campaigns at Titan, and have already been successfully explored in previous drilling by other companies.

Tao Managing Director Patrick Glovac says the addition of the new tenements will make the exploration — and potential exploitation — of the Titan resources much simpler.

“We are very pleased to have rapidly secured additional properties in an area with a record of being highly prospective for HMS,” Patrick said.

“Importantly, the additional properties now form a large and contiguous parcel of land and mineral rights which enable the company to explore the region in a targeted and methodical manner,” he continued.

“This provides the potential for the company to target the delivery of a large and contiguous mineral resource,” the MD added.

Outlook

Upon the exercise of the exclusive option agreements, Tao will be able to enter into long-term leases for the ground and associated mineral rights.

The new properties have been secured on largely the same terms as the company’s existing option agreements at Titan.

Phase one drilling results — including samples from the new properties — will be delivered soon.

Phase two drilling is already underway, with the aim of potentially delineating further resources across the greater project area.

Tao Commodities closed down 5.56 per cent to trade at 25.5 cents.

Related News