The Company has entered into a Farm In agreement with a highly respected Hong Kong based mining company Wanguo International Mining Group (Wanguo). Wanguo is a Hong Kong listed public company and is principally engaged in the business of mining, with an operating copper mine in Jiangxi Province, China, as well as ore processing and sale of copper and iron ore concentrate products in China.
Farm In Agreement – Regional Project:
- Includes the Einasleigh region and part of the Surveyor region outside the granted Mining Leases ML 1393 and ML 30156
- Wanguo will complete a minimum of 150,000 metres of exploration drilling within three years in return for a stake in the regional project – earning up to a maximum 50%.
- CSD will enter into a 50/50 Joint Venture with Wanguo in respect of the Regional Project should Wanguo:
- successfully develop an additional JORC Measured Resource of 20 million tonnes ( in addition to the current 26Mt) at a minimum average grade of greater than 1% copper or greater than 10% zinc plus lead; or
- complete a minimum of 150,000 metres of exploration drilling.
- The intent of the Regional Project is to establish approximately 20M t of Ore Reserves that would trigger a decision to develop a new processing plant in this area with approximately a 10 year mine life at 2m tpa ore throughput.
Minerals Royalty Deed – Near Mine Project:
- Includes tenures near Mount Garnet, the Maitland project, and part of the Surveyor region inside the granted Mining Leases ML 1393 and ML 30156.
- Wanguo will develop or upgrade a minimum of 200,000 tonnes a year to JORC Reserve category in return for a Net Smelter Return (NSR) in respect of each separate deposit within the Near Mine Project in which a JORC Reserve is defined by Wanguo. The NSR payable will be 3% for the first one million tonnes mined and processed from each deposit, and 1.5% thereafter.
Wanguo will fund and manage both the Near Mine and Regional Projects, as well as be responsible for all costs, environmental and reporting requirements relating to the specific tenures explored.