TG1 brings in Rio Tinto as a project partner

This morning our micro cap exploration Investment TechGen Metals (ASX: TG1) announced a farm-in agreement with mining major Rio Tinto.

The agreement signed today will see Rio Tinto farm-in an 80% interest in TG1’s Paterson province project by funding $3M in exploration over five years.

The key terms of the agreement are as follows:

• Rio Tinto must complete at least 3,000m of RC and/or diamond drilling.
• $3M in exploration spending over five years.
• A minimum of $250,000 is to be spent before 31 December 2023.

We suspect the interest from Rio in TG1’s asset comes as the major miner looks to add ground and satellite discoveries to its massive Winu discovery to the north of TG1’s project.

TG1’s project in the Paterson province makes up key Objective #3 of our 2022 TG1 Investment Memo, where we detailed that we wanted to see TG1 complete some exploration work over the prospect.

With Rio Tinto now liable for the exploration spending over the project, TG1 can focus on its two copper focused drilling programs in WA.

1. Drilling three distinct EM anomalies sitting adjacent to high grade rock chips grading up to 8.7% copper (Mt Boggola Project).
2. Drilling a cluster of IP anomalies that sit right underneath high grade rock chips which returned 54.8% copper and 249g/t silver (Station Creek).

Next:

We want to see the remaining assays from the company’s recent gold focused drilling program in NSW, followed by some drilling results from its copper project in WA (Station Creek).