Cohiba Minerals is running the ruler over a farm-in joint venture for exploration tenements prospective for iron oxide copper-gold (IOCG) and base metals in a prominent geological address in South Australia.
The ASX-listed explorer has entered into a term sheet with Olympic Domain Pty Ltd, an Australian proprietary company, over a portfolio licence area covering 1094 square kilometres within the Stuart Shelf.
The Stuart Shelf is host to major IOCG deposits containing large quantities of iron oxides (hematite and magnetite), significant copper, gold, uranium, rare earth elements, and silver.
Importantly, the tenements lie only 50 kilometres from BHP’s massive Olympic Dam copper-uranium-silver gold underground mine and OZ Minerals’ Carrapateena IOCG discovery.
IOCG systems have been confirmed from historical drilling across the tenement package.
Drilling undertaken by CSR in 1996 at ‘Pernatty’ C tenement intersected a zone of 2m @ 8.23% Cu. This drill hole also intersected cobalt mineralisation with a correlation between copper and cobalt with cobalt values to 0.36% and 0.25%.
At Pernatty C, a geological review of copper-cobalt mineralisation potential and soil sampling program / drilling to investigate copper-cobalt mineralisation is planned.
Meanwhile, the company will progress permitting and agreements to fast track drilling on identified gravity targets while a review of geophysics with further modelling may be carried out.
A review and extension of a soil geochemistry program targeting uranium mineralisation will also be progressed.
Under the JV deal, Cohiba will nominate a director to the board with additional board changes expected once technical team engaged to accelerate the company’s projects.
Cohhiba also has commitments to raise $1.46 million via an oversubscribed placement to sophisticated investors.
The company (ASX: CHK) was last trading unchanged at 1.3c at 1:49pm AEDT after emerging from suspension in today’s trade.