DevEx Resources has signed an agreement to earn a stake of up to 75% in the Highway Nickel Project in Western Australia from Brightstar Resources.
According to the deal, DevEx can earn up to 75% of the non-gold mineral rights within the two tenements that comprise the Highway project.
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DevEx could earn an initial 51% stake by spending A$1m ($675,940) on exploration within the first two years of the earn-in agreement. A further 24% interest can be earned by DevEx by spending an additional A$2m over the subsequent two years.
DevEx managing director Brendan Bradley said: “The agreement with Brightstar gives us an opportunity to apply state-of-the-art geophysical methods to test a highly prospective ultramafic horizon along strike from the historical Scotia nickel mine. This is a high-quality greenfield exploration opportunity, which is consistent with DevEx’s strategy to target game-changing discoveries.”
The deal forms part of DevEx’s strategy to target significant new mineral discoveries in prospective Tier-1 locations.
The Highway Nickel Project is located on the nickel sulphide-endowed Highway ultramafic, immediately north of the Saints Nickel Deposits.
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By GlobalDataDevEx said the Highway project comprises 11km of prospective rocks masked by thin lacustrine clays within Brightstar’s Goongarrie Project.
The company plans to use SQUID electromagnetic technology to undertake a ground electromagnetic survey over the prospective rocks to explore for Kambalda-style massive nickel sulphides mineralisation that may lie beneath these thin clays.
Brightstar said the transaction is in line with its efforts to transition towards becoming a gold developer and producer.
Brightstar managing director Alex Rovira said: “This earn-in agreement provides an exciting opportunity to partner with DevEx that will see the targeted exploration of non-gold mineralisation, in particular nickel sulphides, under Lake Goongarrie.
“Brightstar will retain a meaningful stake in these tenements and exposure to any potential nickel discovery, as well as retaining the gold rights.”
