Minotaur has contracted to purchase 100 per cent ownership of the Windsor JV tenements through a standard sale and purchase process.
Minotaur is progressively earning towards an initial beneficial interest in the JV tenements through exploration activity expenditure, with the acquisition by Minotaur of the tenement package resulting in its 100 per cent ownership and cancellation of the JV.
The Windsor JV area covers 631 square kilometres and includes 175 square kilometres of the notably prospective Trooper Creek Formation (TCF), host to numerous high-grade base metal VMS deposits such as the Thalanga and Highway Reward deposits.
Minotaur and the tenement holder have signed a binding Terms Sheet and will enter into a formal Sale and Purchase Agreement, upon which Minotaur will pay AU$250,000 cash and allot AU$250,000 of Minotaur shares.
Under the terms of the JV, to achieve its ultimate interest of 80 pe cent, Minotaur is obligated to invest AU$4 million in tenement expenditure, including AU$0.5 million applied to date.
The JV agreement implicitly values the tenements at AU$5 million (upon Minotaur earning its 80 per cent ceiling).
“TCF extents within the Windsor project area have received no substantive exploration attention since the early 1990s, particularly on those stretches where surficial cover overlies prospective basement lithologies,” stated Minotaur.
“We consider this as providing opportunity and are directing exploration efforts in both covered and outcropping areas through the use of geophysical techniques not available to earlier explorers.”
Minotaur’s first IP survey defined the Hastings anomaly, interpreted to be a VMS-style base metals target. RC drilling through November did not encounter mineralisation, the anomaly being perfectly explained by the presence of pyritic black shale.
“Drilling was terminated mid-way through the programme and when assays are available, a confirmatory report will be issued,” stated the Company.
Despite Hastings being devoid of base metals, Minotaur retains a positive view on the potential of the Windsor tenement group to host economic mineralisation and is further encouraged by Red River’s current drill success at its Liontown VMS deposit, also hosted in the TCF.
Minotaur’s field work will continue into December at Warrawee, then recommence in 2020 after cessation of the north Queensland wet season, targeting VMS-style mineralisation.