OZ Minerals Ltd. signed a joint exploration agreement with unlisted Woomera Exploration Ltd. covering the latter's tenements in South Australia's Eastern Musgrave region, according to a Jan. 29 release.
The joint venture will focus on magmatic nickel-copper sulfide systems similar to those of the Nebo Babel deposits of OZ Minerals' West Musgrave nickel property in Western Australia, which recently progressed to the pre-feasibility stage.
OZ Minerals will fully fund all exploration, including a 4,000-meter drill program designed to test seven targets.
Upon the completion of drilling, the company will have the option to earn a 51% stake in the East Musgrave project by spending a total of A$2.5 million on exploration within 18 months. It can then increase its interest to 75% by spending a further A$5 million on exploration and drilling within the following two years.
The deal is subject to the negotiation of a native title mining agreement with the Tjayuwara Unmuru Aboriginal Corp.
