IGO Limited (ASX: IGO) has formalized a joint venture with Encounter Resources Ltd (ASX: ENR) after completing $15 million in exploration expenditure at the Yeneena Copper Project in Western Australia’s Paterson Province. This milestone grants IGO a 70% interest in Yeneena, with Encounter holding the remaining 30%.
Key Highlights
- Exploration Milestone: IGO’s $15 million investment included two diamond drill holes and 39 aircore drill holes, with results expected in early 2025.
- Joint Venture Established: Following the successful earn-in, the joint venture will focus on unlocking Yeneena’s copper-cobalt potential.
- Paterson Province Potential: The area is a Tier 1 mining jurisdiction, hosting world-class deposits such as:
- Havieron (7.0 Moz Au, 275 kt Cu).
- Winu (7.9 Moz Au, 288 kt Cu).
- Minyari Dome (2.3 Moz Au, 84 kt Cu).
Strategic Importance of Yeneena
The Yeneena Project is situated 60 km southwest of Greatland Gold’s Telfer gold-copper mine and near other significant operations, including the Nifty copper mine. Historical exploration identified high-grade copper oxide prospects such as BM1, with notable results like 10m @ 6.8% Cu from 32m and 20m @ 2.0% Cu from 22m.
Comments from Leadership
Will Robinson, Executive Chairman of Encounter, said:
“We are excited to partner with IGO to realize Yeneena’s copper potential. The Paterson Province’s prospectivity and cutting-edge exploration techniques present a globally significant opportunity for new copper discoveries.”
Joint Venture Details
- Earn-In Terms: IGO earned a 70% interest in Yeneena after sole funding $15 million in exploration.
- Future Contributions: Both parties will contribute pro-rata funding for further exploration.
- Dilution Clause: If a party’s interest falls below 10%, it converts to a net smelter royalty.
The Bigger Picture
Paterson Province is garnering increased interest from major mining companies, underlining its potential as a hub for large-scale copper and gold projects. The collaboration between IGO and Encounter at Yeneena underscores their commitment to leveraging advanced exploration techniques to unlock this underexplored region’s resources.
The next steps will focus on integrating geological, geochemical, and geophysical data into 3D modeling, with drilling results expected to shape the project’s future trajectory.
