Strengthening its position as a leading tenement holder in the Braemar Iron Province, Carpentaria Exploration Limited announced a joint venture agreement with Maosen Australia Pty Ltd that gives CAP the opportunity to earn a 100% interest in EL3998 in South Australia.
The tenement covers over 20 kilometers of the highly prospective Braemar Iron Formation which hosts Carpentaria flagship USD 3.2 billion Hawsons Iron Project and is also located adjacent to Carpentaria South Dam JV. The tenement is close to key existing transport infrastructure being 45 kilometers south-west of the national rail line and highway, 150 kilometers east of Port Pirie and 200 kilometers north-east of Port Adelaide.
Mr Nick Sheard Carpentaria Executive Chairman said that the agreement was a significant boost for the Company iron ore interests, highlighting its position as first mover in the province.
He said the Company had rights to significant sections of the magnetite rich Braemar Iron Formation in Australia newest iron province which is well served by established infrastructure that allows for accelerated development.
He added that "This new Braemar Joint Venture, together with the Hawsons Iron Project, South Dam and the Torrowangee EL in NSW, gives CAP a combined 1,182 square kilometres of tenement holdings and more than 81 kilometers of collective strike of the magnetite siltstone."
Mr Sheard said "Carpentaria will use its extensive knowledge of the Braemar Iron Formation to fast-track exploration, giving the opportunity to potentially develop a new iron ore project just 200 kilometre from a capital city and close to rail and port infrastructure."
The licence covers over 20 kilometers of Braemar Iron Formation of which 10 kilometers outcrop as shown by government mapping. The airborne magnetic data confirms the extension of the Formation under interpreted shallow cover. Included is the northern extension of the South Dam magnetic anomaly and altogether Carpentaria now has interests in 30 kilometers of the Formation locally and is hopeful that exploration will provide a significant magnetite iron discovery similar to others in the highly prospective Braemar Iron Province.
There has been only limited magnetite exploration on the tenement and no previous drilling. Carpentaria plans a ground magnetic survey on the tenement as soon as access is gained. Based on successful results, a drilling program will be designed to establish key characteristics of the mineralisation and an exploration target for the project.
Joint Venture Agreement
Under the terms of the JV, Carpentaria is required to pay Maosen Australia Pty Ltd a USD 25,000 execution payment, subject to 30 days due diligence. On renewal of the tenement, Carpentaria is required to complete 500 meters of drilling and award Maosen 200,000 fully paid shares.
To earn a 60% interest in the JV, Carpentaria must define a 200 million tonne magnetite resource within three years of initial access and pay Maosen USD 100,000.
Carpentaria may earn an 80% interest by completing a prefeasibility study and making a further cash payment to Maosen of USD 200,000, at which time Maosen has the right to contribute on a pro rata basis.
Should Maosen then elect not to contribute to further development, Carpentaria could earn a 100% interest in the project for a further USD 1 millon cash payment to Maosen whereby Maosen would revert to a 1.5% Net Profit Royalty. At the completion of a detailed feasibility study, Maosen could elect to regain a 10% interest.
A private company based in Queensland, Maosen has other iron ore interests within South Australia and an extensive network of connections within the Chinese steel industry.
