Strategic Energy Resources is acquiring the Isa North copper-gold project from Newcrest Mining.

The Isa North project comprises three exploration licences covering an underexplored 976sq km belt considered highly prospective for Iron Oxide Copper-Gold (IOCG) mineralisation.

“The Isa North project was identified during a broader review of the Mount Isa Mineral Province undertaken by SER in our search for the next major copper-gold discovery,” Strategic executive chairman Stuart Rechner said.

“The project, which formed part of Newcrest’s Under-Cover Strategy, has multiple favourable geological characteristics which make it highly prospective for IOCG mineralisation including: a major mineralised fault zone, evidence of extensive hydrothermal alteration undercover, and numerous significant magnetic and gravity anomalies.”

The acquisition deal will see Strategic Energy Resources take 100 per cent ownership of the permit areas in return for Newcrest retaining a First Right of Refusal to any future transaction on the project; a 1 per cent Net Smelter Royalty (NSR) capped at 10 years of production and access to technical data concerning the project.

Strategic Energy Resources also holds Canobie district copper-gold tenements in the Cloncurry region, including the Saxby prospect, as well as the East Tennant project in the Northern Territory.

Mr Rechner said a recently announced expansion of Geoscience Australia’s Exploring for the Future initiative was set to include a deep dive project across the Barkly-Isa-Georgetown region, which covers the Canobie and Isa North projects.

“Geoscience Australia will acquire a wealth of new data across SER’s NW Queensland project areas including magnetotelluric data extending the existing AusLAMP data coverage across the margins of the Mount Isa province,” he said.

“The Geological Survey of Queensland has also announced acquisition of airborne geophysics over SER project areas including the Canobie Airborne Gravity Gradiometry survey expected to commence by mid-2021.

“Upon completion of transfer of the Isa North project, SER will commence land access
negotiations while we refine drill targets.”

The company will also be closely watching the outcome of drilling at the nearby Gibson’s Tank project, which falls under the Red Metal-Oz Minerals Alliance.