Strategic Energy Resources has entered into an exploration joint venture with Sumitomo Metal Mining Oceania for the Bulimba gold project in Queensland.
Sumitomo can earn up to 80 per cent interest in Bulimba through AU$6 million expenditure and 7,500 metres of drilling over five years.
This can be extended to 90 per cent interest through the completion of a definitive feasibility study on a one million ounces of gold equivalent during a five-year period.
Sumitomo will commit to a minimum expenditure of AU$600,000 joint venture in the first 12 months with Strategic Energy to manage and operate the exploration program during the farm-in period.
The exploration joint venture agreement covers four exploration licences in Bulimba. The project covers the undercover extensions of the Palmerville/Gamboola fault zone and is host to multiple significant gold-copper deposits along with silver, lead and zinc. This includes the nearby Mungana and Red Dome deposits with a combined resource of 2.7 million ounces of gold, 273,000 ounces of copper and 34 million ounces of silver.
Strategic Energy Managing Director Dr David DeTata said: “The Bulimba Project is located in the heart of the Northeast Queensland intrusion-related gold province, which is host to an over 20+ Moz gold endowment.
“With the signing of this term sheet, SER has secured a long-term partner that ensures the project will be systematically explored and funded right through to the DFS stage.
“We look forward to working alongside SMMO in our combined search for Australia’s next mineral discovery.”
Sumitomo Managing Director Jiro Uesugi said the Japanese miner was looking forward to participating in a project situated in a region with high gold potential.
“We look forward to advancing the project towards the discovery of gold deposits in collaboration with the highly skilled SER team.”
The execution of the binding agreement is expected to take a further two months to finalise.