Cohiba Resources has signed a farm-in joint venture for exploration tenements prospective for iron oxide copper-gold (IOCG) and base metals in a prominent geological address in South Australia.
The ASX-listed explorer has entered into a farm-in agreement with Olympic Domain Pty Ltd for a proposed joint venture in respect of seven distinct exploration tenements located in South Australia, with a total portfolio licence area of approximately 1094 square kilometres.
The tenements lie within the Stuart Shelf which is host to major IOCG deposits containing large quantities of iron oxides (hematite and magnetite), significant copper, gold, uranium, rare earth elements and silver.
Importantly, the tenements lie only 50 kilometres from BHP’s massive Olympic Dam copper-uranium-silver gold underground mine and OZ Minerals’ Carrapateena IOCG discovery.
IOCG systems have been confirmed from historical drilling across the tenement package.
The Company is pleased to have completed negotiations relating to the Farm-In Agreement and is looking forward to progressing exploration activities on the project areas. Previous exploration results have provided the joint venture with prospective targets to progress exploration and the Company looks forward to providing updates as exploration activities progress.” Cohiba executive chairman Mordechai Benedikt said.
Drilling undertaken by CSR in 1996 at ‘Pernatty’ C tenement intersected a zone of 2m @ 8.23% Cu. This drill hole also intersected cobalt mineralisation with a correlation between copper and cobalt with cobalt values to 0.36% and 0.25%.
At Pernatty C, a geological review of copper-cobalt mineralisation potential and soil sampling program / drilling to investigate copper-cobalt mineralisation is planned.
Meanwhile, the company will progress permitting and agreements to fast track drilling on identified gravity targets while a review of geophysics with further modelling may be carried out.
The farm-in agreement follows successful due diligence investigations.
Shares in Cohiba closed unchanged at 1c.