Rumble Resources Ltd. signed a binding option agreement to acquire up to 75% of the Earaheedy zinc project, covering 75 square kilometers in Western Australia, from Fossil Prospecting Pty. Ltd.
The company is required to issue A$50,000 worth of shares to secure a two-year option, which can be exercised by issuing A$500,000 worth of shares.
Rumble must spend at least A$100,000 before it can withdraw from the joint venture agreement, according to the Oct. 12 release.
Fossil Prospecting will be free carried to the completion of a bankable feasibility study, following which and the decision to mine, it can choose to either contribute to ongoing project development or dilute to a 1.5% net smelter royalty.
Historical drilling at the project intercepted high-grade zinc of up to 18.6% within a 3.3-meter intersection at 11.2% zinc and 0.93% lead from 150 meters.
Rumble said it plans to commission a detailed gravity survey to delineate basement structures and directly define high-density sulfides for drill testing.