AIC Mines has agreed to a $120 million deal for North-West Queensland’s Mount Cuthbert Copper Project, with mineral resources of 246,000t contained copper.

Binding agreements were announced to the ASX this morning for a 100 per cent interest in project owner Materra Metals. The consideration was set at $100 million in AIC Mines shares and $20 million in cash.

Main image: Mount Cuthbert operations

The vendors included Dragon Field International. Mount Cuthbert is located 150km north-west of the AIC’s Eloise copper mine and 130km north-west of Cloncurrry.

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AIC Mines (ASX: A1M) managing director Aaron Colleran said the conmpany had reviewed almost all of the advanced-stage copper opportunities in the Mount Isa – Cloncurrry region over the last five years.

“… and Mount Cuthbert is by far the best opportunity we have seen due to its established resource base, strong exploration upside, and the strategic fit alongside our existing operations,” he said.

Resource and infrastructure

Mineral resources total 18.7Mt grading 1.3 per cent copper for 246,000t copper across five deposits, all on granted mining leases and all open along strike and at depth.

Of that, 7.6Mt at 1.1 percent copper is classified indicated and 11.07Mt at 1.5 per cent copper inferred.

The three principal deposits, Mount Cuthbert-Kalkadoon, Crusader and Mount Watson accounted for most of the resource, AIC said.

The estimate was prepared independently by Derisk Geomining Consultants, who reported that about 73 per cent of the contained copper was sulphide material.

The 2400sq km package includes 21 mining leases and 32 exploration permits. An 8000tpa nameplate capacity solvent extraction and electrowinning (SXEW) plant and a 64-room camp were also included. The project was placed on care and maintenance in 2022.

Sulphide focus

AIC Mines said drilling at the three main deposits had historically targeted near-surface oxide copper, leaving the underlying sulphide systems poorly defined.

An initial two-year program was planned to include approximately 60,000m of resource definition diamond drilling and at least 9,000m of exploration diamond drilling. Work was to start after the wet season, the company told the ASX.

The company said Mount Cuthbert had the potential to support a standalone operation producing copper concentrate and cathode. That was described as ‘an aspirational target’, subject to resource drilling and technical and economic evaluation.

Funding

Existing major shareholder Hawke’s Point Resource Finance agreed to subscribe for $70 million of shares at $0.795 each. The placement was to fund the cash component and accelerated exploration.

On completion, Hawke’s Point would hold 10.3 per cent of AIC Mines and the vendors collectively 12.4 per cent. Both the acquisition and placement are subject to shareholder approval at an extraordinary general meeting on November 4.

Mr Colleran said the Mount Cuthbert acquisition provided AIC Mines with a clear pathway to becoming a multi-asset copper producer in the globally significant Mount Isa–Cloncurrry region.