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.
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.
DevEx 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.”
