The Canobie project is firming up as a potential host to Ernest Henry-style iron-oxide-copper-gold (IOCG) deposits for joint venture partners Strategic Energy Resources and Fortescue.

SER and Fortescue are targeting IOCG and nickel-copper sulphide mineralisation at the project, which covers more than 1800sq km within the Mount Isa Eastern Succession.

SER today released a project update, saying intense IOCG-type alteration had been intersected across the last two holes tested.

“The first field season at the Canobie project has confirmed our view of the prospectivity of the project to host Ernest Henry-style IOCG deposits,” SER managing director David DeTata said.

“All three targets tested this year were magnetite-rich with IOCG geochemical pathfinders present.

“The team has already incorporated these new datasets to design additional geophysical programs to rank the dozens of remaining targets across the project prior to drill testing this year.

“This is the science-driven approach to exploration that SER strives for in search of the next Tier-1 discovery undercover.”

The farm-in and joint venture will see Fortescue earn a 51 per cent stake in the Canobie project by spending $4 million on exploration within the first three years. This will include a minimum of 3000m of basement drilling.

Fortescue may earn an additional 29 per cent interest (for a total interest of 80 per cent) by spending another $4 million on exploration over an additional three years, including a minimum of 3000m of basement drilling.