BHP has agreed to spend A$22m ($17m) over a period of 10 years to earn a 75% interest in the Australian project
BHP, Encounter to jointly develop Elliott copper project. (Credit: Tumisu from Pixabay.)
BHP has entered into a farm-in and joint venture agreement with Encounter Resources for the Elliott copper project in the Northern Territory in Australia.
The joint venture will undertake an exploration programme including seismic surveys and drilling.
Under the farm-in and JV agreement, BHP has agreed to spend A$22m ($17m) over a period of 10 years to earn a 75% interest in the project.
Encounter managing director Will Robinson said: “Copper sourced from sedimentary-hosted deposits is one of the fastest growing sources of high-grade copper in the world. Encounter controls an extensive first mover portfolio of copper projects in the Greater McArthur Superbasin in the NT.
“The potential for this region to host large sedimentary-hosted copper deposits is rapidly emerging and we are delighted to be teaming up with BHP to apply leading edge technologies in the search for Tier 1 copper deposits at Elliott.
“The outcomes of the jointly designed validation program at Elliott have been illuminating and bolstered the potential for the discovery of large sedimentary-hosted copper deposits under shallow cover in the NT.”
In September 2020, BHP has reached an agreement with Encounter to obtain the option to enter the joint venture following the completion of the jointly designed validation programme for the project.
With the programme establishing further support for the potential of Elliott, BHP has now exercised its option to enter into an earn-in and joint venture agreement.
The work programme included the compilation, interpretation, modeling and integration of new and existing data packages at Elliott including seismic, airborne EM, magnetics, gravity, gechemistry and hydro-geochemistry.
Covering more than 4,500km2, the Elliott project is located 200km north of Tennant Creek on the Stuart Highway which runs along the western margin of the project.
It was the first project secured by Encounter in the the Northern Territory and comprises seven tenements.
It is located at a major structural intersection on the southwestern margin of the Beetaloo Basin, a part of the Greater McArthur Super basin.