Syndicated Metals (ASX: SMD) is an Australian base metals exploration and development company with control of a tenement package covering over 4,000 square kilometres in the world recognized Mount Isa mineral province in North Queensland.
The company manages two advanced base metals projects with a combined resource inventory in excess of 269,000 tonnes Copper, 30,000 tonnes Molybdenum, 2.3 million ounces Rhenium and 315,000 ounces Gold as well as having a suite of advanced and early stage exploration targets on the surrounding tenements.
Syndicated Metals to farm-in to Kalman molybdenum-rhenium-copper-gold project
Syndicated Metals (ASX: SMD) will farm-in to the Cerro Resources (ASX: CJO, TSX-V: CJO) Kalman molybdenum-rhenium-copper-gold project creating a joint venture.
The outcome of the farm-in for Syndicated is that the company will control around 100 kilometres of the prospective Pilgrim Fault Zone, located in the Mount Isa region of Northwest Queensland.
Sydnciated already wholly owns tenements in the area, and post the agreement the company will control of one of the largest landholdings in the region.
Syndicated will acquire a controlling interest and management of Kalman, and can earn up to an 80% interest in two stages by equity issue and exploration expenditure.
- Stage 1: Syndicated can earn initial 60% by issuing $2 million in shares to Cerro and by spending $4 million on exploration over 2 years; and
- Stage 2: Syndicated can earn up to 80% by issuing $1 million in shares to Cerro and spending $7 million on exploration over 3.5 years.
Cerro is therefore free carried to a decision to mine, with Syndicated holding an option to purchase the remaining 20% of the mine development post this decision.
From the joint venture Syndicated can extract synergies and economies of scale with the company's current copper-gold projects in the province.
Kalman has the potential for a shallow open pit mining operation to augment Syndicated’s growing copper-gold resource at Mount Remarkable, which is expected to enhance the opportunity for early mine development.
Russell Davis, managing director of Syndicated, said the company had a strong belief in the exploration potential of the Mount Isa district and the Pilgrim Fault zone in particular.
“The potential of this zone to host additional significant mineral discoveries is considered to be outstanding."
One of the first priorities of the joint venture will be to drill out the near surface copper-gold mineralisation at the project, which Syndicated said has the potential to boost the regional copper-gold resources when combined with those at Barbara.
Syndicated has also planned additional drilling aimed at improving the definition of the high grade molybdenum, rhenium, copper, gold core at the project.
