Wednesday, 15 February 2012

Augur Resources signs joint venture for Homeville nickel cobalt project with Metals Finance

Augur Resources (ASX: AUK) has entered a joint venture agreement with Metals Finance’s (ASX: MFC) Australian subsidiary for the Homeville nickel-cobalt laterite project in central New South Wales.

The agreement allows Metals Finance Australia to earn a 51% interest in Homeville by undertaking and funding a Definitive Feasibility Study.

Homeville hosts a JORC Indicated Resource of 4.4 million tonnes at 0.99% nickel and 0.06% cobalt and an Inferred Resource of 11.9 million tonnes at 0.91% nickel and 0.05% cobalt, based on a 0.7% nickel cut-off grade.

Metals Finance has found that drill data from the project suggests that a discrete portion of the resource is higher grade and could be open to early development.

Detailed modelling is required to verify this.

If the development of Homeville proceeds, funding will be in accordance with each partner’s equity interest.

However, both companies have the option to reduce their holding to a 10% net profit interest with no contribution to capital.

Feasibility studies at Homeville will begin in the June quarter and are targeted for completion within 18 months of entering into the agreement.

Augur remains focused on exploration and development of advanced gold and copper projects.

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