Jun 14, 2016

Aussie Miner Acquires Majority Stake in Sagaing Copper Project

Australian mining company Metro Mining has signed a joint venture agreement to acquire 80 percent of a copper project in Sagaing Region in Myanmar.

The Mahar San project is highly prospective for copper, gold and base metal mineralisation in Volcanic Massive Sulphide (VMS) settings, according to the company.

In an Australian Stock Exchange filing the company said the project requires minimal cash commitments over the coming six months and it is engaged in discussions with potential funding parties who have a focus on Myanmar.

The agreement also covers exploration and mining of Yar Taung Mine project, comprising 1853.5 acres. Metro will contribute A$62,500 for an 80 percent stake in Mahar San. The miner will loan at least A$100,000 per year to the JV company to undertake drilling, resource definition, feasibility studies and other evaluations, according to the deal.

Myanmar is considered one of Asia’s great unexplored mineral frontiers with yet to be realised potential for world- class porphyry copper-gold systems as well as a variety of styles of base metal and tin-tungsten mineralisation all contained within a central volcanic belt that stretches for over 1,000 kilometres. There has been virtually no modern exploration targeting these commodities and deposit styles undertaken in Myanmar.

Metro has been reviewing exploration opportunities in Myanmar over the past few years. An Australian-led, Myanmar-based geological consulting company was engaged to conduct technical reviews of potential opportunities.

The Mahar San project is approximately 220km north-northwest of Mandalay. It lies within the Mesozoic to Tertiary Central Volcanic Magmatic Arc that is prospective for various styles of copper, gold and base metal mineralisation.

The project consists of four concessions: three ‘small mining’ concessions for copper (16 to 20 hectares each) and an enveloping, larger copper exploration concession covering 7.5sqkm. Small-scale mining of gold and copper mineralisation has been intermittently undertaken from three small open-pits since 2010. Gold mining ceased in 2013 and the mining of deeper copper sulphide mineralisation was commenced with a small amount of copper metal produced from small leach pads.

Metro said it believes that the application of modern exploration techniques to better assess the area for gold, copper and other base metal mineralisation provides an attractive opportunity for the company.

Source: Myanmar Business Today