Base metals: Rumble reels in $10m deal for its gold-copper mine in the Paterson

The activity in WA’s latest “exploration hotspot”, the Paterson Province, is continuing with Rumble Resources (ASX:RTR) securing a $10m investment into its Lamil gold-copper project.

AIC Mines (ASX:A1M) sees potential in the project, which is located between two large mining operations, and has agreed to spend $10m on exploration, plus $500,000 on shares, over five years to earn a 65 per cent stake.

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The Paterson province has been put on the map as an exploration hotspot after Rio Tinto (ASX:RIO) confirmed its huge copper-gold discovery (codename: Winu).

Rumble said this generated interest in its Lamil project from a “large number” of parties.

Shareholders thought it was a good deal, with shares climbing nearly 9 per cent this morning to 6.2c.

The Lamil project lies midway between Metals X’s (ASX:MLX) Nifty copper mine and Newcrest Mining’s (ASX:NCM) Telfer gold-copper mine.

Location of Lamil project. Pic: Rumble Resources

Rumble says the Lamil Dome target at the Lamil project has “striking similarities” to the nearby Telfer Dome, the host of the Telfer mine.

Recent geophysical work indicates that the target area has a maximum depth of cover of only 100m.

The area was previously believed to have much deeper cover and because of this has seen only minimal exploration.

In other ASX base metals news:

Galena Mining (ASX:G1A) boss Alex Molyneux says the explorer’s latest feasibility level study has delivered “sector-leading financial returns” for the Abra lead and silver mine in WA. The study delivered a higher net present value (NPV), longer mine life and lower C1 cash costs than the earlier pre-feasibility study.

The NPV increased $25m to $553m at spot prices, and Galena says the C1 costs of 44 US cents (62c) per pound is among the lowest for global primary lead producers. At full production, Abra is expected to produce 95,000 tonnes of lead and 805,000 ounces of silver each year over an initial 16 years. Investors didn’t seem too impressed though, with shares slipping over 5 per cent to 37.5c on Monday morning.

S2 Resources (ASX:S2R) has hit more nickel sulphide mineralisation at its Polar Bear project in WA. Drilling returned hits of 17.83m at 0.75 per cent nickel from 183m, including 0.75m at 2.41 per cent nickel from 194.53m and 0.68m at 3.31 per cent nickel and 0.43 per cent copper from 200.15m.

S2 said the mineralisation intersected at the Gwardar prospect indicates the presence of a substantial east dipping, south plunging lava channel, similar to those known at Kambalda and Widgiemooltha, “heavily pregnant with nickel sulphides”.

Galileo Mining (ASX:GAL) has uncovered more potential drill targets at its Norseman copper prospect in WA. A moving loop electro-magnetic survey has pinpointed highly conductive targets beneath the Subzero copper prospect.

“The magnitude of the conductor suggests the possibility of a large mineralised system and we plan to commence drill testing the area in August,” managing director Brad Underwood told investors.