Metro Mining Limited, via its 100% owned Myanmar subsidiary, has signed a joint venture agreement (JVA) to acquire 80% of the Mahar San copper project in Myanmar.
Located in the Sagaing Region of northern Myanmar, approximately 220 km north-northwest of Mandalay, the Mahar San project is highly prospective for copper, gold and base metal mineralisation in volcanic massive sulphide (VMS) settings.
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 7.5 km2.
Work undertaken to date by Metro’s exploration consists of: prospect-specific and grid-based geological mapping; rock-chip and channel sampling of outcropping gossans and sulphide mounds; logging and sampling of three drill holes completed by the Mahar San company; grid-based soil sampling; grid-based ground magnetic surveying; and ground-based tie domain electromagnetic surveying.
“High grades of copper, gold, silver, lead and zinc were returned from rock-chip and channel sampling of sulphide mounds within the Mahaga open pit with the best result being a channel sample of 4m at 6.7 g/t Au, 261 g/t Ag, 1.35% Cu, 2.63% Pb and 11.6% Zn,” the company told the ASX.
“Resampling and assaying of core from a pre-existing drill hole (DH2) at the south end of the open pit, returned 4m at 10.1 g/t Au, 254 g/t Ag, 0.58% Cu, o.7 Pb and 9.96 Zn from 13.6m to 17.6m. The poly-metalic nature of the mineralisation, as well as its geological setting in andesitic volcanic rocks, is indicative of a VMS system.”
The terms of the JVA between Metro Myanmar and Mahar San Company envisions the establishment of a JV company, with Metro to contribute US$62,500 for an 80% interest and Mahar San to contribute its tenements.
Under the agreement, Metro will loan at least US$100K per year to the JV company to undertake drilling, resource definition, feasibility studies and other evaluations, and will retain the right to terminate the JVA at any time if exploration results are deemed unsatisfactory.
The company also said that it will seek to involve other investors who have a focus on Myanmar at certain points throughout the Mahar San project development.
“Metro 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 which, with the introduction of funding participants, can be executed without distracting management or diverting funds from the development of the Bauxite Hills project which is the company’s primary focus,” reads Metro’s ASX announcement.
The JVA is subject to certain conditions precedent which include the transfer of the Mahar San tenements to the joint venture company and the completion of technical due diligence.