Strategic Energy Resources Limited (SER), an ASX-listed company focused on discovering world-class copper deposits in Queensland, has announced a Joint Venture Agreement (JV) with Sumitomo Metal Mining Oceania Pty Ltd (SMMO) for its 100%-owned Bulimba Gold Project. The project is located approximately 50km northwest of Chillagoe in Northeast Queensland and captures the undercover extensions of the Palmerville / Gamboola Fault Zone.
Under the terms of the JV, SMMO can earn up to an 80% interest in the Bulimba Gold Project through a $6 million expenditure and 7,500 metres of drilling over five years. Furthermore, SMMO has the option to increase its stake to 90% upon completion of a Definitive Feasibility Study (DFS). The agreement includes a minimum JV expenditure commitment of $600,000 in the first 12 months.
SER will manage and operate the exploration program during the farm-in period. Sumitomo Metal Mining Co. Ltd, the parent company of SMMO, has over 300 years of mine development and operation experience. Dr David DeTata, Managing Director of SER, expressed enthusiasm for the partnership, highlighting the project’s location in a gold-rich province and the benefits of securing a long-term partner to systematically explore and fund the project through to the DFS stage.
Jiro Uesugi, Managing Director of SMMO, echoed this sentiment, stating their pleasure in participating in the Bulimba project and their anticipation of advancing the project towards the discovery of gold deposits in collaboration with the SER team. The execution of a binding term sheet is expected to take a further two months to finalise.
