Consolidated Uranium (CUR) has agreed to acquire the Milo uranium, copper, gold and rare earth project in Australia, through its wholly owned unit CUR Australia.
This project will be acquired from Isa Brightlands, part of Australian mineral exploration firm GBM Resources.
The transaction will see CUR making a $500,000 cash payment, which has to be paid in five days from the signing of the deal.
The firm will also issue 750,000 common shares at $2.85 apiece.
CUR president and CEO Philip Williams said: “Like many of our other projects, we believe that Milo boasts strong exploration potential, which we intend to pursue in short order.
“The project also fits well with our existing Queensland assets, namely Ben Lomond and Maureen, and will provide critical mass in an important global mining jurisdiction.”
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The Milo project comprises Exploration Permit – Minerals 14416, which include 20 sub-blocks located within The Mt Isa Inlier in northwestern Queensland.
Williams added: “We feel strongly that Milo will be a valuable project to CUR as it may be advanced as a uranium asset with additional historic mineral resources of rare earths, copper and gold.
“In October 2020, the Premier for Queensland announced a government initiative to develop New Economy Minerals within The North West Mineral Belt. Within this report, Milo was highlighted as one of the potential development projects.”
The Milo oxide copper-gold (IOCG) deposit hosts base and precious metal mineralisation in moderate to north-east sulphide-rich breccia zones.
From 2010 to 2012, GBM drilled a total of 32 drill holes with each drilling phase extending the mineralisation to the north and south.
According to CUR, Milo’s oxidation is generally shallow and typically and extends 10m to 20m below the surface.
The firm considers the project to have a ‘very good’ exploration potential with most of the previous work directed at The Milo Gossan.
GBM’s emphasis is on the prospective Drummond Basin in Queensland, which holds large high-grade epithermal gold deposits.