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GTE to spend $2.5M to earn 80% of McKinlay copper-gold
GTE will spend $2.5M to earn 80% of McKinlay copper-gold-silver project in Cloncurry, with air core and RC drilling planned after AIC's Brumby results.
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Great Western Exploration (ASX: GTE) signed a farm-in with private company Moffat Resources to earn a stake in the McKinlay copper-gold-silver project in Queensland's Cloncurry district, and plans to follow up with air core and reverse circulation drilling.
The staged deal gives Great Western an initial 51% interest for spending $500,000 on exploration. A further $2 million in exploration expenditure lifts its holding to 80%. The company can then move to full ownership by paying the vendors up to $2 million in cash or shares.
McKinlay has seen little to no exploration over the past 25 years, a gap the company intends to close. Kevin Somes, chairman, said modern exploration techniques present an opportunity for a world-class discovery. Great Western is targeting Ernest Henry-style iron oxide copper gold, or IOCG, mineralisation and Cannington/Broken Hill Type silver-lead deposits, the two styles behind the region's biggest mines.