Oz hunts for nickel on Toro soil

PERTH (miningweekly.com) – Copper miner Oz Minerals has signed a heads of agreement (HoA) with uranium developer Toro Energy to explore for nickel on two tenements located near the Lake Maitland uranium deposit, in Western Australia.

Under the terms of the HoA, Oz Minerals would spend A$5-million to earn a 70% interest in the non-uranium rights over the two tenements.

The ASX-listed company would spend an initial A$500 000 on exploration within the first 12 months of the agreement, before exercising its option to spend a further A$1.5-million within the first three years, to earn a 51% interest.

Oz Minerals could earn a further 19% interest by spending another A$3-million within three years of earning its 51% interest.

“Re-analysis of old drill data results has uncovered three significant bottom-of-hole nickel intercepts spaced over 100 m at less than 50 m depth,” Oz Minerals MD and CEO Andrew Cole said on Friday.

“When you overlay those results with a sizeable magnetic anomaly and consider the heritage of the surrounding region, this is a really interesting project that is easy to test with significant upside.”

The Lake Maitland tenement was one of four currently making up Toro’s planned Wiluna uranium project.

Toro MD Dr Vanessa Guthrie said on Friday that the HoA would enable the company to maintain its focus and spending commitments on the continued development of the Wiluna project.

“Toro is a uranium-focused developer and explorer; however, we welcome the interest and support shown by Oz Minerals in exploring this exciting non-uranium opportunity.”

Oz Mineral’s primary focus would be on the Yandal One nickel prospect, located less than 60 km from BHP Billiton’s Mount Keith deposit.