Superior Resources announced Wednesday the signing of an earn-in and joint venture agreement with global miner South32 to advance exploration of the Company's 100%-owned Nicholson Project in north-west Queensland.
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Nicholson is on the Queensland-NT border west of Walford Creek nn the Carpentaria Zinc Province, which contains around 20 percent of the world's zinc inventory.
Under Stage 1 of what will be called "Hedleys Joint Venture", South32, owners of Cannington Mine, must fully fund an initial $2 million or 4000m of drilling within the first 12 months of operations, with funding to begin immediately.
South32 may elect to proceed to Stage 2 by putting in another $4 million on exploration within four years to earn 70% interest in the project.
Superior will be the JV operator during Stages 1 and 2 and its managing director, Peter Hwang said he was looking forward to advancing Nicholson.
"The initial exploration program is targeting up to three Tier 1 equivalent, drill-ready Mount Isa style lead-zinc-silver targets, which we believe could be similar in size to the McArthur River and Century deposits," Mr Hwang said.
"The earn-in and JV agreement with South32 is a significant milestone for Superior's lead-zinc strategy. It validates the potential of the project to host a world-class base metals deposit and ensures that we will be fully funded to complete the substantial drilling program within the first year of the JV."
The Nicholson Project is 250km south-east of the MacArthur River Mine and 110km north-north-west of the Century Mine. At least five large geophysical targets have been identified with only one target previously drilled.
Mr Hwang said drilling would begin after an Aboriginal cultural heritage survey in early June.
- courtesy North West Star