Option to acquire Pilbara nickel-copper-PGE project
This morning our junior exploration Investment Techgen Metals (ASX: TG1) entered into an agreement giving the company the option to acquire a nickel-copper-PGE project in the Pilbara, WA.
The project hosts three EM anomalies that could be interesting drill targets for TG1 should it complete the acquisition.
TG1 believes the project could be prospective for nickel-copper-PGE sulphide mineralisation, with historic drilling and rock chip sampling data confirming the right type of geology in the region.
Project's exploration history:
In 1972, four RC drillholes intersected thick sequences of logged ultramafic rock types — a common host to magmatic intrusive style nickel-copper-PGE deposits.
One of those holes returned a 111m hit with nickel grades of 0.2%.
The project then had some geochem and geophysical surveying done with rock chips confirming the right type of geology and highlighting three high priority EM anomalies that warrant drill testing.
Below are those three targets:
What is TG1 paying for the project?
For the option to acquire the project, TG1 is paying $10k upfront.
The remainder of the purchase cost only comes due if TG1 decides to actually proceed with the acquisition. The total to be paid will be $225k, split as follows:
- $25,000 in TG1 shares when the acquisition is completed.
- $50,000 in TG1 shares if the company hits a drill intercept measuring at least 5m (continuous) at 1% nickel equivalent within five years of the acquisition.
- $150,000 in TG1 shares if a JORC resource of at least 5mt at 1% nickel equivalent is announced within five years.
- 1% net smelter royalty (NSR) over the project.
We like that this deal gives TG1 exposure to an interesting set of EM targets that are yet to be drill tested, and for a relatively small capital outlay of only $10k in cash and the remaining $225k in TG1 shares (only if the deal gets completed).
