- Trek Metals (TKM) enters an affermage agreement with ASX-lister Buxton Resources (BUX) to gain a majority stake in the Centurion project in the Great Sandy Desert region of WA
- The project hosts a compelling iron oxide copper gold (IOCG) target that has a similar geophysical signature to the IOCG Tier 1 deposits and will be drilled under the agreement.
- In two stages, Trek must spend at least $3.5 million on exploration within three years to acquire a 75% stake in the Centurion project
- Trek shares are trading up 9.86% at 7.8 cents and Buxton shares are also up 4.76% to trade at 11 cents
Trek Metals (TKM) has entered into an affermage and potential joint venture agreement with Buxton Resources (BUX) to gain up to 75% equity in the Centurion project.
The Centurion project is located 400 kilometers south of Halls Creek in the Great Sand Desert region of Western Australia.
According to Trek, the project presents a “compelling” iron oxide copper gold (IOCG) opportunity in a frontier mining province.
The Centurion Project contains a magnetic anomaly that spans a 3.5 kilometer by five kilometer area with a coincident gravity peak in a slightly offset position. This would be a characteristic geophysical signature of IOCG Level 1 deposits such as the Olympic Dam and Prominent Hill deposits in South Australia.
CEO Derek Marshall said he was “absolutely delighted” to have struck the deal with Buxton Resources.
“It’s rare to find a walk-in drilling opportunity of this scale and quality in frontier exploration terrain with true potential to deliver a game-changing Tier One discovery,” Marshall said. .
“The agreement is structured in a way that gives us the ability to value this world-class opportunity for a relatively modest outlay, the estimated cost of a deep diamond drilling program. If we are successful, it would be a transformational outcome for both parties. »
Under the lease and joint venture agreement, Trek will have to drill test the IOCG target over the next 21 months and will only fund $500,000 of expenses, including the satisfaction of at least 300 meters of diamond drilling as part of the first stage.
Once the first stage is completed, Trek would have acquired a 51% stake in the project.
Depending on the results of the Stage One drilling, Trek may move to Stage Two in which it will spend an additional $3 million in expenditures within three years to earn the remaining 24% interest. This would bring its total stake in the Centurion project to 75%.
Buxton will be operated free of charge at a level of 25% of the project capital until an operating decision is made and both parties may choose to form a co-contributory joint venture.
Shares of Trek rose 9.86% to trade at 7.8 cents while shares of Buxton rose 4.76% and traded at 11 cents at market close.