Projects Overview
Syndicated Metals' interests are focused on the world recognised Mount Isa mineral province in Northwest Queensland where the company controls tenements extending over 4,000 square kilometres of this highly prospective region.
The first of Syndicated's key assets in the Mount Isa region is the advanced Kalman molybdenum-rhenium-copper-gold project, located some 60 kilometres southeast of Mount Isa. Under a restructured Farm-in and Joint Venture Agreement completed in May 2011 with Cerro Resources NL (formerly Kings Minerals NL), Syndicated can earn up to 80% of the Kalman project and surrounding exploration tenements in 2 Stages. Syndicated is the manager of the Kalman Joint Venture.
Stage 1: Syndicated can earn an initial 60% by issuing $2 million shares to Cerro and by spending $4 million on exploration in two years;
Stage 2: Syndicated can earn up to 80% by issuing $1 million shares to Cerro and spending $7 million on exploration over 3.5 years.
Cerro is then free carried to a "Decision to Mine" when Syndicated will have the option to purchase the remaining 20% of a mine development area once a decision to mine is made.
(See ASX announcement dated 16 May 2011 for full details of the agreement.)
Syndicated's other key asset, the Mount Remarkable project which contains the Company's Barbara copper-gold resource, is located around 60 kilometres northeast of the major regional centre of Mount Isa in close proximity to essential infrastructure. All tenements are 100% owned by Syndicated, apart from two tenements (EPMs 16112 and 16197) covering the northwestern portion of the Barbara copper-gold deposit and the area surrounding the Blockade copper mine, which are subject to the West Leichhardt Joint Venture with Mount Isa Metals Limited. Syndicated holds 51% and management of the West Leichhardt joint venture.
In early 2008, Syndicated's first drilling program following listing on the ASX in December 2007 encountered ore grade copper-gold intercepts at the Barbara prospect and a maiden copper-gold resource was announced in October 2008. Subsequent drilling campaigns in 2009 and 2010 progressively expanded this initial resource to its present 5.3 million tonnes @ 1.4% Cu for 76,000 tonnes of contained copper.
These two projects have direct synergies with near-surface copper-gold mineralisation at Kalman having the potential to boost the Company's regional copper-gold resources when combined with the existing Barbara resource at Mount Remarkable. In addition, Syndicated will undertake additional drilling at Kalman to improve the definition of the high grade molybdenum-rhenium-copper-gold deposit as well as following up on exciting high grade copper-gold results encountered in the final phases of drilling at Kalman.
In July 2011 Syndicated completed a farmin and joint venture agreement with Deep Yellow Limited over four tenements - EPM14281 (Yamamilla), EPM14916 (Ewen), EPM 16533 (Crocodile Creek) and EPM15070 (Prospector) - adjacent to the Mount Remarkable Project. (See ASX announcement dated 13 July 2011 for further details.) The joint venture applies to all minerals excluding uranium. The tenements are considered highly prospective for iron oxide copper gold (IOCG) deposits and complement Syndicated's Mount Remarkable project and the Kalman Project tenements. In particular EPM14281 (Yamamilla) contains several prime drill-ready targets with outcropping copper mineralization coincident with VTEM, magnetic and geochemical anomalies defined by a previous explorer but not drilled.
To further broaden its base metals interests, Syndicated has initiated a zinc strategy with applications being submitted for tenements north of Mount Isa in a corridor between the Mount Isa, George Fisher and Century zinc mines. When granted, these tenements will form the basis of SMD's Carpentaria Zinc Project targeting SEDEX style lead-zinc deposits in this world class zinc province.