AuKing Mining Ltd (ASX:AKN) has taken full ownership of the Koongie Park Copper-Zinc Project in Western Australia’s highly mineralised Halls Creek region, less than two years after agreeing to jointly develop the asset with Astral Resources NL (ASX:AAR) (AAR (NYSE:AIR)).
The company's 100% interest in Koongie Park is subject to a 1% net smelter return (NSR) royalty in favour of AAR (NYSE:AIR) after the latter’s participating interest in the project fell to below 10% from June 30.
Under the terms of a 2018 earn-in and joint venture agreement between the two companies, AAR is deemed to have withdrawn from the joint venture and its remaining interest to have converted to a NSR royalty if the interest dilutes to below 10%.
Onwards and upwards
AuKing chief executive officer Paul Williams highlighted the significance of this milestone in the company's development plans for Koongie Park, saying: “We are very pleased to have reached this acquisition milestone within two years of the joint venture’s commencement.
“Having completed more than 10,000 metres of additional drilling, expanded the existing JORC resources at Sandiego and Onedin, reported a maiden resource for Emull and then recently presenting the results of a scoping study, we believe that Koongie Park is now well established on a development path to coincide with the likely strong future demand for copper and zinc.”
READ: AuKing Mining to progress Koongie Park copper mine following "compelling" scoping study
AAR will retain exploration and development rights for gold and other precious metals within the Koongie Park project area, including platinum group elements.
However, these rights do not apply to the mining licences for the Onedin and Sandiego deposits.
About the company
AuKing Mining is focused on uranium, copper and zinc projects in Australia and Tanzania.
Its flagship Koongie Park Project is adjacent to several significant mining and development operations, including Nicolson’s Gold Mine, Panton PGM Project and Savannah Nickel Mine.
Koongie Park has already been the subject of significant exploration drilling and analysis since the 1970s, hosting more than 300 reverse circulation and diamond drill holes consisting in excess of 60,000 metres of drilling in total.
In January, AuKing acquired several uranium and copper licences in Tanzania, including:
- Mkuju – near to the world-class Nyota uranium project in southern Tanzania; the subject of significant previous exploration;
- Manyoni/Itigi – the subject of significant historical exploration situated in central Tanzania, just west of Dodoma; and
- Mpanda/Karema – prospective copper areas in western Tanzania that were the subject of historic mining operations but largely untouched by modern exploration methods.