Special Report: Caravel has executed a joint venture Round Oak Minerals in the Mt William nickel and platinum group elements prospect near Waroona, Western Australia.
This comes after the farming into the prospect – a 4km long magnetic feature that sits in a similar geological setting as the exciting Julimar nickel-copper-PGM deposit that is also in the South West Yilgarn Terrane – back in October 2020.
Caravel Minerals (ASX:CVV) notes that Mt William is interpreted to be a layered mafic complex that shows discrete layering and a character consistent with the chonolith style of intrusion at Gonneville (Julimar).
However, what is particularly interesting for the company is that the Mt William intrusion is substantially larger than the Gonneville intrusion, which is just 1.5km long.
Mt William also has no recorded previous exploration or drilling other than shallow drilling for bauxite to the north, as there are no outcrops in the area to indicate basement geology and the source of the magnetic anomaly.
Joint venture agreement
Under the joint venture agreement with Round Oak – a subsidiary of Washington H. Soul Pattinson & Co Limited – Caravel will serve as the operator of Mt William whilst it holds an interest of 51 per cent or more.
Round Oak has the option to dilute its interest rather than contributing to its share of costs though it also maintains the right to claw back up to 30 per cent interest in the project at any time up to 30 days after the completion of a pre-feasibility study.
As manager, Caravel is working to progress the grant of the E70/2338 application.
Once secured, Caravel can earn a 51 per cent stake in Mt William by spending $500,000 within two years. It may also enter into the joint venture with the initial 51 per cent stake.
This article was developed in collaboration with Caravel Minerals, 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.