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Mining
Lefroy’s Marloo Dam tenement south of its namesake project near Kalgoorlie is poised to receive some much-needed attention under a farm-in deal with SensOre.
Under the agreement, minerals targeting company SensOre can earn up to 70% in the Marloo Dam by spending up to $800,000 on exploration activities within four years from the commencement of the agreement.
Marloo Dam adjoins SensOre’s existing Maynards Dam project and has been identified as being prospective for gold mineralisation. Both tenements are adjacent to and south east of Gold Fields’ +10Moz St Ives Gold operations.
SensOre will manage all exploration activities during the farm-in period and after the joint venture is created, allowing Lefroy Exploration (ASX:LEX) to focus on its wholly-owned Eastern Lefroy project that includes the promising Burns copper-gold discovery.
However, Lefroy will retain exposure to any upside at Marloo Dam, which makes up about 1% of its large WA land portfolio, through its 30% interest in the tenement.
Marloo Dam is located about 12km south of the Lefroy gold project and has been the subject of initial exploration such as ground reconnaissance, drill hole truthing and prospecting over anomalous areas by Lefroy.
Geology in the area consists of a northerly trending succession of mafic and ultramafic volcanics located approximately 4km east of the crustal scale Boulder-Lefroy Fault.
Additionally, a northerly striking structural trend known as the Paris Shear Zone is interpreted to lie on the eastern boundary of the Marloo Tenement.
SensOre is required to spend at least $200,000 within the first 12 months before it can elect to withdraw.
Should it meet the $800,000 farm-in expenditure requirement, the two companies will then establish a joint venture over the tenement.
This article was developed in collaboration with Lefroy Exploration, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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