Image credit: Metalex
The license area, within 30 kilometres of the famous Kimberley Diamond Mines, was last known to have been explored by DeBeers in the 1960s, with two kimberlite pipes, two kimberlite dykes and two kimberlites of the unknown type discovered.
DeBeers unsuccessfully applied for the exploration license over this area again in 2014, as IIP applied shortly beforehand and was awarded the license.
Metalex said indicator minerals collected from the kimberlites suggests they contain rare G10-10 garnets, which support the presence of high-grade kimberlite.
The agreement with IIP entails a staged earn-in for Metalex.
Metalex will first fund R250,000 to convert the prospecting license to a mining lease to acquire a 20% interest.
The next stage will involve Metalex funding an airborne geophysical survey and testing known kimberlites and new targets.
Completion of this and a $10,000 payment to IIP will earn Metalex a further 15% interest.
It said the third stage was drilling of a minimum of 12 holes to test kimberlites which show economic potential.
Completion of this work and payment of a further $10,000 to IIP will earn Metalex an additional 16%, while the fourth stage will see Metalex funding a bulk sampling of a kimberlite.
This, along with payment of $100,000 to IIP, will earn the company a further 10% interest, bringing its total stake to 61%.
“Upon completion of a feasibility study on the project, Metalex will earn a final 9% interest bringing its interest to 70%,” it said.
“Upon the decision to proceed with mine construction a further $100,000 payment will be made to IIP.”
The joint venture will be subject to a 10% net profits royalty interest in favour of Verdi Farms Trust.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
