Aus Tin Mining (ASX:ANW) has agreed with Compound Resources with a view to developing alluvial chromite operations at its Marlborough project (EPM 17768) in Queensland.
Historical mining of chromite is evident in the area and elevated stream sediment results confirm this prospectivity.
During recent field reconnaissance alluvial chromite was identified in a number of areas.
The terms agreed provide Compound Resources with a 120 day evaluation period to further investigate the economic viability of mining of alluvial chromite, after which they may apply for a mining licence.
As consideration, ANW will receive a series of staged payments totalling up to $185,000 plus a 5% royalty.
The company will retain a claw-back should a discovery for metals other than chromite be made.
Compound Resources is a private company with experience in the exploration and mining of chromite and was instrumental in the development of numerous bulk commodity projects in Western Australia, Northern Territory and Queensland.
They have undertaken an extensive review of Australian chromite projects and determined the feasibility of mining alluvial chromite within ANW's EPM 17768.
The agreement provides a pathway to generating revenue for ANW from a non-core commodity that could fund exploration efforts for tin, nickel and other base and precious metals.
ANW will continue to advance its exploration program at EPM 17768 with a focus on the recently identified nickel-cobalt-platinum targets at Racecourse and Spring Creek.
In September, ANW attracted sophisticated investors in a placement which raised $543,687 at $0.004. Directors and management of ANW also participated in the placement.
The funds will be allocated to develop the Taronga Tin Project in New South Wales, and to other carry-out work across its exploration portfolio.
The company recently used a research program to identify 305 tin prospects and historic mines in the New England tin province covered by its exploration licences.
A data review of historic records and previous work to date indicates six key targets within close trucking distance to the Taronga Tin Project and provides the basis for an initial Exploration Target of 150,000 to 265,000 tonnes at 2.3% to 2.5% tin.
This equates to 3,450 to 6,625 tonnes of contained tin.
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