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- Strategic Energy Resources (SER) has signed an agreement with Newcrest Mining (NCM) to acquire the Isa North Copper-Gold Project in Queensland
- The project comprises three exploration licences and is highly prospective for iron oxide copper-gold (IOGC) mineralisation
- Strategic Energy will purchase 100 per cent of the project, and Newcrest will retain a first right of refusal to any future transaction and a one per cent net smelter royalty for up to 10 years of production
- Once the project is officially transferred, the company will begin land access negotiations while it refines drill targets
- Company shares are up 6.38 per cent and are trading at 5 cents
Through an agreement with Newcrest Mining (NCM), Strategic Energy Resources (SER) will acquire the Isa North Copper-Gold Project in Queensland.
The project comprises three exploration licences on the Western Fold belt which is considered highly prospective for iron oxide copper-gold (IOGC) mineralisation.
Strategic Energy Resources identified the project through a review of the Mt Isa mineral province when searching for a major copper-gold discovery.
The Isa North project hosts a major mineralised fault zone, evidence of extensive undercover hydrothermal alteration and multiple magnetic and gravity anomalies. These geological characteristics make it highly prospective for IOGC mineralisation.
As part of the deal, SER will acquire 100 per cent of the entire project. In return, Newcrest will retain a first right of refusal to any future transaction on the project, a one per cent net smelter royalty (NSR) capped at 10 years of production, as well as access to technical data of the project.
Once the transfer of the project has been completed, Strategic Energy Resources will begin land access negotiations while it refines drill targets.
However, the company prefaced that it won’t begin drilling at Isa North until after its upcoming drill programs at the East Tennant Project in the Northern Territory and the Canobie Project in Queensland.
Company shares are up 6.38 per cent and are trading at 5 cents at 11:48 am AEST.
