Tenements unencumbered for development of Mt Woods Magnetite Project
Perth, Australia: IMX Resources Limited (ASX: IXR, TSX: IXR, IXR. WT) (‘IMX’ or the ‘Company’) announces that OZ Minerals Limited (ASX: OZL) (‘OZ Minerals’) has advised IMX of their intention to withdraw from the Mt Woods Copper-Gold Joint Venture (‘JV’).
The decision means that OZ Minerals will relinquish its interest in the non-iron rights over the Mt Woods tenements and ownership of those tenements and all mineral rights will now revert to 100% ownership by IMX. The tenements themselves remain in good standing and are now unencumbered, which is expected to facilitate simpler negotiations for the development of the Mt Woods Magnetite Project with strategic partners.
In 2012, OZ Minerals significantly reduced exploration expenditure on its own tenements in the Prominent Hill region and since the beginning of 2013 has focused only on near-mine growth. Withdrawal from the IMX JV is consistent with this strategy, with the bulk of the expenditure having been incurred in the early years of the JV.
IMX is aware of continued interest being shown in the exploration potential for iron oxide copper-gold (‘IOCG’) deposits in the Gawler Craton in South Australia, where one of the world’s largest copper-gold mines is located at Olympic Dam. The Mt Woods tenements covers nearly half of the Mt Woods Inlier which is part of the greater Gawler Craton and is already host to three producing copper-gold mines based on IOCG deposits. The shallow depth of cover on the Mount Woods tenements, relative to the rest of the Gawler Craton, makes it a unique exploration opportunity in this highly prospective area.
The JV acquired an excellent database of geophysical and geological information during the three and a half years of operations, which is expected to not only continue to aid iron ore exploration on the tenements, but also to form the basis for discussions with interested parties to continue exploration for IOCGs.
Managing Director Neil Meadows commented, “IMX and OZ Minerals have worked together for several years on work programs in the Mt Woods Inlier as well as in the surrounding community. I am pleased to say that both companies intend to continue to have a very productive and cooperative working relationship.
I understand and respect both OZ Minerals’ decision to withdraw from the Mt Woods JV and the manner in which they have conducted themselves when communicating their decision. The positive in this for IMX’s shareholders is that with the tenements remaining in good standing and now unencumbered, the task of finding a partner for the development of our Mt Woods Magnetite Project should be enhanced.”
OZ Minerals to withdraw from Mt Woods Copper-Gold JV after spending over $14M on exploration
Non-iron rights over the tenements revert to 100% ownership for IMX Resources
Tenements now unencumbered in respect to development of the Mt Woods Magnetite Project