AusQuest and South32 Set Sights on Coober Pedy Copper-Gold Exploration
AQD (AQD) Share Update November 2024 Tuesday 12th
AusQuest's Coober Pedy Project Gains Approval for Exploration
AusQuest Limited (ASX: AQD) has announced that its Coober Pedy Iron-Oxide Copper-Gold (IOCG) Project has been accepted as a new exploration opportunity under its Strategic Alliance Agreement with South32.
Instant Summary:
- Coober Pedy project accepted under Strategic Alliance Agreement with South32.
- Planned major IP survey in 2025 to identify sulphide targets.
- Project located in the Olympic Dam IOCG Province, known for major copper-gold deposits.
- South32 can earn up to 80% interest by investing US$4.5 million and completing a Pre-Feasibility study.
Project Overview
AusQuest Limited has announced a significant development in its exploration efforts, with the acceptance of its Coober Pedy IOCG Project under the Strategic Alliance Agreement (SAA) with South32. The project is located at the northern end of the world-renowned Olympic Dam IOCG Province in South Australia, an area known for major copper-gold deposits such as Olympic Dam, Carrapateena, and Prominent Hill.
The SAA grants South32 exclusive rights to AusQuest's projects, allowing them to earn a 70% interest by spending US$4.5 million on exploration. They can further increase their stake to 80% by completing a Pre-Feasibility study.
Exploration Plans
The alliance aims to discover copper-gold deposits using advanced geophysical techniques. A large-scale Induced Polarisation (IP) survey is planned for 2025 to identify sulphide mineralisation before drilling. This follows detailed gravity surveys that have already highlighted target areas with IOCG-style alteration, suggesting the presence of significant mineral systems.
Strategic Partnership
Graeme Drew, Managing Director of AusQuest, expressed enthusiasm about the partnership with South32, emphasizing the potential for large-scale discoveries at Coober Pedy. The project benefits from its strategic location within a province that hosts several major deposits, enhancing its exploration appeal.
The acceptance of the Coober Pedy project under the SAA is a positive development for AusQuest. The strategic partnership with South32 and the project's location in a world-class mineral province are likely to boost investor confidence. The planned exploration activities, particularly the IP survey, could lead to significant discoveries, potentially driving up AusQuest's stock value.
Investor Reaction:
Analysts are likely to view this announcement positively due to the strategic partnership with South32 and the project's location in a prolific mineral province. The potential for significant copper-gold discoveries could attract investor interest, although the success of future exploration activities will be crucial.
Conclusion:
Investors should keep a close eye on the progress of the Coober Pedy project as AusQuest and South32 advance their exploration efforts. The project's strategic location and partnership potential make it a noteworthy opportunity in the mining sector.