- Trek Metals (TKM) secures a farm-in deal with ASX-lister Buxton Resources (BUX) to earn a majority stake in the Centurion Project in WA’s Great Sandy Desert region
- The project hosts a compelling iron oxide copper gold (IOCG) target which has a similar geophysical signature to tier-one IOCG deposits and will be drilled under the agreement
- Over two stages, Trek needs to spend at least $3.5 million on exploration within three years to earn a 75 per cent interest in the Centurion Project
- Trek shares are trading 9.86 per cent higher at 7.8 cents and Buxton shares are also up 4.76 per cent to trade at 11 cents
Trek Metals (TKM) has entered a farm-in and potential joint venture deal with Buxton Resources (BUX) to earn up to a 75 per cent stake in the Centurion Project.
The Centurion Project is located 400 kilometres south of Halls Creek in the Great Sandy Desert region of Western Australia.
According to Trek, the project presents a “compelling” iron oxide copper gold (IOCG) opportunity in a frontier mineral province.
The Centurion Project contains a magnetic anomaly that extends over a 3.5-kilometre by five-kilometre area with a coincident gravity high in a slightly offset position. This is reportedly a characteristic geophysical signature of tier-one IOCG deposits such as the Olympic Dam and Prominent Hill deposits in South Australia.
CEO Derek Marshall said he was “absolutely delighted” to have secured the deal with Buxton Resources.
“It’s rare to come across a walk-up drilling opportunity of this scale and quality in a frontier exploration terrane with genuine potential to deliver a game-changing tier-one discovery,” Mr Marshall said.
“The agreement is structured in a way that gives us the ability to evaluate this world-class opportunity for a relatively modest outlay, being the estimated cost of a deep diamond drill program. If we are successful, it would be a transformational result for both parties.”
Under the farm-in and joint venture deal, Trek will need to drill test the IOCG target within the next 21 months and it shall solely fund $500,000 of expenditure including satisfying at least 300 metres of diamond core drilling as part of stage one.
Once stage one is completed, Trek would have earned a 51 per cent stake in the project.
Depending on drill results from the first stage, Trek may proceed to stage two under which it will spend a further $3 million of expenditure within three years to earn the other 24 per cent interest. This would take its total interest in the Centurion Project to a 75 per cent interest.
Buxton will be free-carried at a 25 per cent project equity level until a decision to mine milestone is reached and both parties may choose to form a co-contributing joint venture.
Trek shares were up 9.86 per cent to trade at 7.8 cents while Buxton’s shares were up 4.76 per cent and to trade at 11 cents at market close.