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Exploration Alliance with Vale
Targeting Copper Porphyry Discoveries
Matilda prospect was initially tested with three drill holes in 2022.
Each hole intercepted porphyry mineralisation with average grades of >0.2% copper equivalent* from top to bottom of the hole.
Significant interest from a number of major companies resulted in establishing an Exploration Alliance with Vale in 2023.
Exploration Alliance is structured over a number of phases:
- Phase 1: Vale to sole fund up to $5.0 million exploration programme.
- Phase 2: Vale may elect to continue exploration activities and to sole fund one or more selected copper projects to Pre-feasibility Study (“PFS”) stage
- Phase 3: Vale will have an option to, acquire a 75% share of a legal entity to be incorporated by Serabi (“JV Company”). Immediately after the incorporation of the JV Company, Serabi shall transfer to the JV Company the copper project. Serabi shall sell 75% of the JV Company ownership to Vale for US$5 million (“Exercise Price”). Vale will continue to sole fund the JV by capital contributions to completion of a Definitive Feasibility Study (“DFS”), while Serabi retains a 25% interest.
- Phase 4: Vale can acquire an additional 15% interest in the JV Company for a further payment of the higher of $5 million or 1.5% of the net present value of the project, taking their interest to 90%. Serabi then has a put option to sell their remaining 10% interest in the JV Company for a further $10 million and a 1.5% Net Smelter Royalty (“NSR”)
- The JV Company may acquire additional copper projects from Serabi, in which case Serabi will be entitled to additional payments of the higher of $5 million or 1.5% of the net present value of the project for each, when a DFS has been completed.
Significant intercepts from the 2023 first phase drilling lie within a broad zone of pervasive Cu-Au mineralisation and include:
- Hole 23-MT-004 (partial results) – 59.45m @ 0.49% Cu and 0.13 ppm Au from 29.85m (including 6.93m @ 0.95% Cu and 0.28 ppm Au from 78m)
- Hole 23-MT-006 (full results) – 13.81m @ 0.47% Cu and 0.10 ppm Au from 200,95m
Approximately 6,500 meters of diamond drilling have been completed in 21 holes at Matilda.
The copper mineralisation and hosting rocks have many characteristics that typify alkalic porphyry deposits found in Australia and Canada.
Reprocessing of data from the airborne geophysical survey completed in 2022 indicates that the positive drill results may lie within a 1.2 kilometre by 800 metre demagnetized structural zone. The zone remains untested both laterally and at depth.
In addition, deep penetrating Induced Polarisation (“IP”) and Audio-Magnetotelluric (“AMT”) geophysical programmes have been designed to complement the drilling. The IP survey commenced in September 2023.