OXR oxiana limited

announcement in full - read it here

  1. 192 Posts.
    29 August, 2003
    AUSTRALIAN STOCK EXCHANGE AND MEDIA RELEASE
    OXIANA TO FARM IN TO MINOTAUR’S PROMINENT HILL

    COPPER-GOLD PROJECT IN SOUTH AUSTRALIA
    Oxiana Limited has today agreed to farm in to the Mt Woods Joint Venture (MWJV), subject
    to Minotaur Resources Limited moving to full ownership.
    Minotaur, which currently owns 19% of the joint venture, today announced that it had reached an
    agreement to acquire BHP Billiton’s 51% stake, along with Newmont’s 23.9%, Sons of Gwalia’s
    3.8% and Sabatica’s 2.3%, taking it to 100% ownership of the MWJV.

    The MWJV includes the well-known Prominent Hill copper-gold project, discovered in 2001,
    which is now at an advanced stage of exploration.
    Diamond and RC drilling conducted in 2002 at Prominent Hill returned wide intersections of high
    grade copper and gold mineralisation.
    The farm-in agreement with Minotaur will commence with Oxiana funding a $3.5 million
    exploration and metallurgical test program over 14 months. On completion of this program Oxiana
    will have the right to exit the joint venture or to proceed to the next phase.

    Ultimately, Oxiana will have the option to earn a 65% interest in the MWJV, by taking the project
    through to a development stage. This would involve spending up to $34 million - including the
    initial $3.5 million - on staged programs with appropriate exit mechanisms existing at each
    juncture. Completion of a pre-feasibility study would see Oxiana earn a 35% interest.

    As part of the farm-in agreement, Oxiana will also participate in exploring the 3700km 2 Mt Woods
    area which is considered prospective for Olympic Dam style mineralisation.

    This agreement is an excellent, low risk opportunity for Oxiana to earn into one of Australia’s most
    promising copper-gold exploration plays.

    Owen Hegarty
    Managing Director
 
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