Multi-million deal unlocks Stuart Shelf copper-gold potential

Proposed three-stage exploration at Stuart Shelf. Photo - Department for Energy and Mining, South Australia
Proposed three-stage exploration at Stuart Shelf. Photo - Department for Energy and Mining, South Australia

Australian exploration and mining company DGO Gold have announced plans to expand land position around a highly prospective copper target, 160-kilometres north of Port Augusta.

The large, shallow Zambian Copper Belt-style target sits on the Stuart Shelf, host to both BHP's Olympic Dam and OZ Minerals Carrapateena deposits.

DGO has signed an earn-in agreement with Investigator Resources Limited which will see the company spend up to $6.35 million on exploration in three stages, over five years.

The deal will also allow DGO to earn an 80 per cent interest in five South Australian exploration licenses adjacent to their Pernatty land position.

DGO Executive Chairman Eduard Eshuys said: "DGO has a highly compelling sediment-hosted copper target based on carefilly researched models and concepts.

"This deal with Investigator Resources allows DGO to rapidly advance exploration in South Australia.

Location of DGO and Investigator Resources tenements in South Australia.

Location of DGO and Investigator Resources tenements in South Australia.

The earn-in requires DGO to commit to spend a minimum of $350,000 in the next 12 months.

During the second stage, a further $2 million will be spent over two years for DGO to lock-in 51 percent ownership of the tenements.

In the third stage, DGO will spend an extra $4 million over another two years, which will secure its 80 percent of the assets.

Commenting on the deal, Investigator's MD Andrew McIlwain noted: said the agreement provides low risk opportunity.

Investigator managing director Andrew McIlwain said the agreement provides a "low risk opportunity" while the company focuses on its flagship Paris silver project - which is also in South Australia.

"The Earn-In program provides continued exposure to exploration success whilst preserving funds for Paris," he said.

"We are pleased to partner with DGO, who have a significant adjacent tenement holding and are focused on exploring the region for Zambian Style Copper deposits".

This story Multi-million deal unlocks Stuart Shelf copper-gold potential first appeared on The Transcontinental.