Austral Resources and New Frontier Minerals have formed a strategic alliance to increase production at the former’s Mt Kelly processing facility in Queensland.
Under a memorandum of understanding (MoU), Austral and New Frontier will establish a strategic framework to leverage their combined copper assets along the Mt Isa copper belt.
New Frontier will initially supply copper ore from its Big One deposit within its NWQ copper project. Austral will then process the ore at its Mt Kelly plant, potentially enhancing the exploration and mining opportunities present within the enlarged asset base.
New Frontier’s other responsibilities under the MoU include:
- applying for a mining lease over Big One
- seeking permission to commence trial mining and process the existing copper oxide stockpiles
- securing a landowner agreement and work out an appropriate compensation formula
- conducting further drilling campaigns to expand the known resource at Big One
- exploring other prospective targets within NWQ for potential satellite deposits.
“This is an excellent outcome for both groups that has the potential to create significant value for stakeholders,” New Frontier chairman Ged Hall said.
“For New Frontier, it provides a potential path to production for copper ore from satellite deposits across the NWQ copper project, while Austral Resources secures a new source of feedstock for its Mt Kelly processing facility.
“The New Frontier team looks forward to working closely with counterparts at Austral Resources to maximise the exploration and mining potential from this strategic alliance.”
New Frontier will now seek necessary regulatory approvals to have an 11,000-tonne stockpile at Big One to undergo metallurgical testwork through the Mt Kelly facility.
“Whilst there is still some metallurgical work yet to be completed in relation to suitability of New Frontier’s ore for the Mt Kelly processing facility, the MoU is demonstration that the company has assets that are attractive to third parties, and we would welcome others to the table as well,” Austral chairman David Newling said.
“The Mt Isa region is primed for consolidation in the copper industry and Austral remains focused on these opportunities where it has the potential to add significant value for shareholders.”
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
