Syndicated Metals snares drill ready copper gold targets adjacent to Mount Remarkable project in QLD

Syndicated Metals (ASX: SMD) has added to the copper-gold potential at its Mount Remarkable Project by signing a farmin and joint venture agreement with Deep Yellow (ASX: DYL) over four highly prospective tenements.

The tenements located near Mount Isa in Northwest Queensland are adjacent to Syndicated’s Mount Remarkable tenements and contain several prime drill ready copper-gold targets that are considered highly prospective for iron oxide copper gold (IOCG) deposits.

At Mount Remarkable the Barbara copper-gold deposit is advancing towards development, and at Kalman, a recently commenced drilling program is targeting near-surface copper-gold mineralisation.

These projects are both located within 60 kilometres of existing infrastructure at the Mount Isa mining centre with near surface copper-gold at Kalman considered likely to complement the existing resources at Barbara, boosting the potential for early mine development.

Commenting on the JV, Russell Davis, Syndicated’s managing director, said “the tenements contain a number of stand out gold and base metals targets which are particularly attractive to Syndicated because of their potential to complement our existing Barbara and Kalman resources.

"We expect that copper and gold mineralisation discovered on these tenements will positively impact on our development strategy in the Mount Isa region.”

Initial drilling is scheduled to commence at Yamamilla in the fourth quarter targeting outcropping copper mineralisation with co-incident VTEM, magnetic and geochemical anomalies which were defined by a previous explorer but not drilled. The JV applies to all minerals excluding uranium.

The targets at Yamamilla are located just 10 kilometres from Syndicated’s Barbara copper-gold deposit and within the Prospector trend which contains known IOCG-style alteration systems. Syndicated’s new Bloodwood prospect discovered in late 2010 is located at the northern end of this trend.

The JV includes four tenements - EPM14281 (Yamamilla), EPM14916 (Ewen), EPM16533 (Crocodile Creek) and EPM15070 (Prospector) and encompass an area of 650 square kilometres.

Syndicated can earn up to 80% equity in the non-uranium mineral rights through expenditure of $800,000 over four years.

Following this Syndicated is to then sole fund the joint venture until delivery of a Mining Study. At this time Syndicated has the option to purchase the remaining 20% interest in the joint venture at fair market value.

Syndicated must expend $150,000 in the first 18 months and it may elect to withdraw from the joint venture at any time provided it has spent a minimum of $150,000.

The company is building on its already significant metal resource inventory in the Mount Isa region where it now controls tenements covering an area of over 4,000 square kilometres.

Along with Kalman, these new tenements could provide further impetus for Syndicated to amass a resource threshold for early mine development at Syndicated's Mount Remarkable project.
Korea Zinc Company, through its Australian subsidiaries, holds a 13% interest in Syndicated.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/17831/syndicated-metals-snares-drill-ready-copper-gold-targets-adjacent-to-mount-remarkable-project-in-qld-17831.html