The joint venture will pursue magmatic nickel-copper sulphide systems similar to the ones found in the Nebo Babel deposits in West Musgrave, where an OZ Minerals exploration joint venture had recently advanced to pre-feasibility.

The new prospect in East Musgrave in far-northern South Australia is located about 500km east of the West Musgrave project.

OZ Minerals exploration head Richard Holmes said that multiple drill-ready targets on Woomera Exploration’s tenements have been identified after applying Vector Residual Magnetic Intensity (VRMI) geophysical technique.

Holmes revealed that the new joint venture with Woomera will use the VRMI technique in the Eastern Musgrave prospect. 

Holmes added: “Previous work undertaken on Woomera Exploration’s prospects has shown prospective geology and mineralisation occurring within the tenement package.

“Modelling of the processed magnetic data suggests prospective geology may occur as shallow as 10 metres below surface. However, traditional geophysical processing methods do not highlight the anomalies that are usually associated with mineralisation.

“We believe there are several drill-ready targets and have commenced the development of a Native Title Mining Agreement (NTMA) for exploration with the Tjayuwara Unmuru Aboriginal Corporation, as part of our first venture in the Eastern Musgraves.”

OZ Minerals said that it will handle the funding of all exploration operations, subject to the successful negotiation of an NTMA. The exploration activities include planned electromagnetic surveying where deemed appropriate to further refine target models, culminating in approximately 4000m of drilling to test seven targets.