AUSTRALIA tin developerElementos Limited has sold five Cloncurry copper-cobalt-goldmining lease to Hammer Metals as doubts emerge over the viability of the leases.
Elementos told the Australian Stock Exchange last week it was dissolvingits three-year joint venture with Chinalco Yunnan Copper (CYU) and subsequently sellingfive north-west Queensland mining leases to Hammer Metals.
Managing director ofJV partner Chinalco Paul Williams said there was“significant uncertainty”the mineral resource was as big as earlier explorations had indicated.
“The current view is that while the mineralisation may extend along the strike zone and at depth, there remains significant uncertainty that a resource of the size of CYU’s stated exploration target can be established,” Mr Williams said.
“Furthermore follow-up drilling would be deep (+300m) and at significant additional cost.”
The five leases, known as the “Millennium” leases, (MLs2512, 2761, 2762, 7506 and 7507) are situated on the northernprojection of the Pilgrim Fault, near Cloncurry.
Elementos and Chinalco have withdrawn from a JV to extract copper-cobalt-gold from north of Cloncurry.
The Millenium leases are 50kmnorth of Hammer Metals’Kalman deposit and 16km west of the Rocklands copper-cobalt mine.
Previous drilling indicates the potential for significant copper-cobalt-gold mineralisation in the area.
Hammer Metals was more upbeat about the future of the leases.
It released a statement saying cobalt wasa significant contributing metal in the Millennium mineralisation and was a critical metal in the production of Lithium Ion batteries.
“According to analysts a global supply shortage is possible with Tesla alone likely to increase the global demand by 10 per centper annum,” the company’s statement said.
Hammer will pay $57,950 (including the replacement of an environmental bond) toElementos for the leases and issue 500,000shares to Chinalco Yunnan Copper Resources.
ElementosCEOTim McManus said the company’sfocus wason the staged development of theirCleveland tin, copper andtungsten project in northwest Tasmania and getting to positive cash flow in the shortestpossible time.
“We see the sale of Millennium as releasing value from non-core assets to assist us inachieving our goals,” Mr McManus said.
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