Gold and base metals explorer Carawine Resources Limited (ASX:CWX) has entered into a Farm-In and Joint Venture Agreement with Rio Tinto Exploration Pty Limited (RTX) to explore the Baton and Red Dog Tenements in Western Australia.
Carawine Managing Director David Boyd said the tenements are part of the company’s Paterson Project where 20 high-priority target areas covering a range of potential deposit types have been identified so far.
Mr Boyd said attracting Rio Tinto to Farm-In underlined the exciting potential of the Red Dog and Baton prospects.
“To have one of the world’s largest resources companies committing to significant expenditure on our Baton and Red Dog tenements is a strong endorsement of the prospectivity of the Tenements,” Mr Boyd said.
“RTX is actively exploring in the Paterson to complement their Winu discovery. They have the technical knowledge and resources to rapidly and systematically evaluate the numerous high priority targets at Baton and Red Dog, increasing the chances of a successful discovery.
“This deal also ensures Carawine is well positioned to share in the benefit of any discoveries, with Rio Tinto well placed to support a potential development should the exploration activities be successful. We look forward to sharing the details of the exploration programmes as they progress.”
Key terms of the Agreement are:
Mr Boyd said Carawine’s tenement holding in the Paterson region has recently increased, with the company being successful in four ballots for competing tenement applications.
These include a large tenement immediately south and adjoining the Baton tenements, as well as tenements which extend to within 1km of Metals X’s Nifty Copper operation.