BHP has teamed up with Encounter Resources in a deal that could see it spend up to $22 million on a Northern Territory copper project.
The Big Australian has entered an option agreement with Encounter covering the 4500 sq km Elliott copper project.
Elliott was first identified by analysing new datasets generated by Geoscience Australia, as part of the Federal Government’s Exploring for the Future Program.
BHP can earn a stake of up to 75 per cent over 10 years by spending up to $22 million.
“New data has shone a light on the potential for copper to be found under shallow cover in the Northern Territory,” Encounter managing director Will Robinson said.
“Encounter moved early and aggressively to secure first mover opportunities in this new frontier.
“We are delighted to be teaming up with BHP in the search for Tier 1 copper deposits at Elliott.
“We look forward to working alongside the highly respected BHP exploration team to validate this compelling opportunity.”
Encounter said a program of compilation, interpretation and modeling of the data packages at Elliott would be completed by the parties before the end of this year.
Following completion of this program, BHP may elect to fund additional validation programs during 2021 prior to making a decision on whether to exercise its option and to enter into a earn-in and joint venture agreement.