The company earned the interest after meeting the Stage 1 expenditure commitment of $3.0 million within the two-year period.
Andromeda has elected to immediately advance to Stage 2 in order to earn a further 24% (75% total) by spending $3.0 million over a three year period.
Notably, Andromeda is able to progress to an immediate 75% equity interest should a decision to mine, supported by a bankable feasibility study, be agreed by the joint venture partners.
Carey’s Well deposit the initial focus
Andromeda is preparing a more detailed pre-feasibility study (PFS) for the Carey’s Well deposit within the Poochera Project in South Australia.
This PFS will take into account the optimised scoping study released in September 2019, which is based on the assumption of an initial direct shipping ore (DSO) operation during the first two years.
During the first two years, the revenues generated from DSO sales would fund the construction of a dry-processing plant.
Updating scoping study due this month, updated PFS next quarter
Notably, the PFS will also consider separate studies underway considering a wet-processing option, should initial studies deem wet-processing viable.
The updated scoping study that is considering wet-processing at site as a viable option will be released prior to the end of the month.
The detailed pre-feasibility study results are to be released during the June quarter of 2020.