Australian Mines Ltd (ASX:AUZ) has exercised an option to acquire 100% of the Flemington Cobalt Nickel Scandium Project in New South Wales.
Completion of the sale agreement will occur over the next 20 business days at which time Australian Mines will make the final payment of $3.4 million to Jervois Mining Ltd (ASX:JRV).
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Australian Mines managing director Benjamin Bell said: “I am very pleased that Australian Mines has progressed its Flemington Project to a point that we are now in a position to complete the acquisition of this highly promising cobalt-nickel-scandium deposit on a 100% basis prior to our next drilling campaign, and before we advance the project towards a pre-feasibility study.”
“The Flemington Project is located in New South Wales’ premier location for cobalt mineralisation and shares a tenement boundary with Clean TeQ’s Sunrise deposit, which has been proven to link with Australian Mines’ current Mineral Resource12 at Flemington.”
Resource expansion drilling planned
The existing JORC resource totals 2.5 million tonnes at 0.103% cobalt and 403 ppm scandium in the Measured category and 0.2 million tonnes at 0.076% cobalt and 408 ppm scandium in the Indicated category.
Drilling at Flemington will commence following the completion of the current 50,000-metre resource expansion drilling program at the company’s Sconi Cobalt-Nickel-Scandium Project.
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Bell added: “We remain optimistic about significantly increasing the Mineral Resource inventory at the project, given that only 1% of the prospective geology at Flemington has been comprehensively evaluated.
“Our early modelling of the cobalt grade, host geology and potential mineral resource tonnage at Flemington has demonstrated significant exploration potential.”
Sconi remains flagship project
Drilling at Flemington will aim to increase the JORC resource and support moving towards the commencement of a pre-feasibility study on the project.
The goal is for Flemington to act as a second production source of cobalt, nickel and scandium to the flagship Sconi Project in Queensland where a bankable feasibility study is nearing completion.
