West Perth-based Universal Resources Ltd has signed a joint venture agreement with Claremont Resources Ltd, which will see the latter company spend up to $6.5 million on the Burra Zinc project in exchange for 77 per cent of Universal's interest in the tenement.
The full text of a Universal announcement is pasted below
Universal Resources Limited (ASX:URL, "Universal") is pleased to announce the finalisation of a Joint Venture Agreement in relation to the Burra Zinc Project in the Lachlan Fold Belt of NSW.
Claremont Resources Limited ("Claremont") will spend up to $6.5 million on exploration at the project, over a period of six years from commencement. In total, Claremont may earn up to 77.77% of Universal's 90% interest (70% interest in the tenement). Universal will be the manager of the Joint Venture, until a decision to mine is made. Full terms of the agreement are contained in Appendix 1.
Claremont is a pure exploration company whose strategy is to finance advanced exploration projects to decision to mine. Burra, which is held under Exploration Licence ("EL") 5692, is currently owned 90% by Universal and 10% by private interests unrelated to the Company or its directors.
Universal's Executive Chairman, Mr Peter Ingram, said that the Company looked forward to a long and fruitful association with Claremont.
"We have now ensured that the highly promising Burra project will receive the level of exploration funding warranted by previous results, whilst maintaining an exposure for our shareholders," said Mr Ingram.
"This also allows us to maintain our management focus on the development of the Roseby Copper Project in Queensland, where our updated feasibility study is due out shortly," he said.
Previous exploration at Burra has identified massive sulphide mineralisation with a zinc dominant suite of base and precious metals. The mineralisation is related to felsic volcanic and volcano-sedimentary rocks of late Silurian age in the Cowra-Yass Trough. These rocks are similar in age and lithology to the rocks hosting the massive sulphide deposits at Woodlawn and Captains Flat in the adjacent Woodlawn Trough, 25 km to the east of Burra.
