Fellow Australian base metals explorers and have teamed upto explore for nickel and copper in South Australia's Coompana Province.

OZ Minerals said July 21 that it has entered into a heads ofagreement with Mithril to explore seven license areas in the region.

The South Australian government has collected and releaseddata for the Coompana Province that includes high-resolution aeromagnetic,seismic survey data and magnetotelluric data.

Additionally, a ground gravity survey is planned for thefinal quarter of 2016.

The first step will be for Mithril to undertake a targetgeneration exercise in the Coompana Block to identify potential drill targets,with OZ Minerals agreeing to contribute A$250,000 to the stage-one targetingprogram.

If Mithril is successful in identifying prospective drilltargets, a formal joint venture will be executed.

OZ Minerals said initial drill testing could be conducted inthe early half of 2017.