SER partners with Sumitomo on joint exploration at Bulimba Gold Project

Strategic Energy Resources (SER) has entered into a non-binding word expanse for an exploration associated task (JV) successful Australia with Sumitomo Metal Mining Oceania (SMMO), a subsidiary of Sumitomo Metal Mining.

This statement pertains to the Bulimba Gold Project, which is afloat owned by SER. The task is situated astir 50km north-west of Chillagoe successful north-eastern Queensland.

It encompasses the extensions of the Palmerville/Gamboola Fault Zone, which hosts respective important gold-copper deposits, including the Mungana and Red Dome deposits.

These deposits person a combined assets of 2.7 cardinal ounces (moz) of gold, 273,000t of copper and 34moz of silver.

This statement allows Sumitomo to gain up to an 80% involvement successful the task done an expenditure of A$6m ($4.02m) and 7,500m of drilling implicit 5 years.

An further 10% involvement tin beryllium earned by completing a definitive feasibility survey (DFS).

Strategic Energy Resources managing manager David DeTata said: “The Bulimba task is located successful the bosom of the north-east Queensland intrusion-related golden province, which is big to implicit a 20-plus moz golden endowment.

“With the signing of this word sheet, SER has secured a semipermanent spouse that ensures the task volition beryllium systematically explored and funded close done to DFS stage. We look guardant to moving alongside SMMO successful our combined hunt for Australia’s adjacent mineral discovery”.

The exploration statement encompasses 4 exploration licences, identified arsenic EPM28877 done EPM28880, with an enactment to see further adjoining tenements.

Within 14 days of executing the agreement, Sumitomo is required to reimburse SER A$100,000 for a information of the expenditures already committed.

Sumitomo indispensable perpetrate to a minimum expenditure of A$600,000 wrong the archetypal 12 months, aft which it whitethorn withdraw, allowing SER to clasp afloat ownership of the project.

For the archetypal earn-in phase, Sumitomo tin get an archetypal 51% involvement successful the task by spending A$3m implicit 3 years, which indispensable see astatine slightest 2,500m of drilling.

In the 2nd earn-in phase, Sumitomo tin summation its involvement to 80% by investing an further $3m implicit 2 years, which indispensable see a minimum of 5,000m of drilling, successful summation to the drilling from the archetypal phase.

Sumitomo tin execute a 90% involvement upon completing a DFS connected a assets exceeding 1moz of golden equivalent wrong a five-year period.

SER volition beryllium free-carried until Sumitomo decides to participate the pro-rata expenditure play aft completing immoderate of the earn-in phases.

If either party's involvement falls beneath 10%, it volition person to a 2% nett smelter instrumentality royalty.