Canadian mineral explorer Inflection Resources and AngloGold Ashanti Australia have reached a farm-in agreement to outline terms that will allow the latter to earn stakes in several of Inflection’s copper-gold projects in New South Wales, Australia.

According to the agreement, AngloGold will pay A$10m ($6.81m) for exploration expenditures across the portfolio as part of the first phase of exploration.

In this phase, a wide range of large intrusive-related, copper-gold targets including the Duck Creek project will be drill tested.

A minimum commitment of A$6m and a 10% management fee will be payable to Inflection during this phase.

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By GlobalData

The second and third phases of the agreement will be staged earn-ins, where AngloGold can select up to five designated projects.

It can earn up to 65% interest by funding $27m in exploration expenditures on each designated project, with a maximum limit of A$135m on expenditure.

Furthermore, AngloGold will have a right to earn an additional 10% interest on each of the designated projects under the fourth phase.

This phase is subject to the completion of a pre-feasibility study solely funded by the company on a minimum of two million ounces of gold or gold-copper equivalent in measured and indicated resources.

The first phase is expected to include 30,000m of drilling with two initial drill rigs.

Inflection plans to begin drilling soon, initially focusing on completing deep drill holes on the Duck Creek project.

Inflection Resources president and CEO Alistair Waddell said: “The execution of this Agreement with AngloGold sets the foundation for the upcoming exploration programme and provides the necessary capital to aggressively drill test and potentially develop our large portfolio of copper-gold porphyry targets within the northern extension of the Macquarie Arc.  

“We very much look forward to working with our partners AngloGold to explore the portfolio of targets over the coming years.”