The NT Independent is providing an update of resource news from across the Northern Territory. Among the highlights this week are Elmore’s takeover of the Peko project, Central Petroleum updating shareholders of its Palm Valley 12 drilling, TNG’s Mount Peake project attracting more investors, and Vimy Resources intersected uranium at its Angularli Deposit in the Northern Territory.

TNG’s Mount Peake project charms more financiers

TNG’s (TNG) Mount Peake project in the Northern Territory has received a letter of interest from the Federal Republic of Germany Export Credit Agency (ECA), Euler Hermes, for the financing of $300 million. This, combined with the letter of support from Export Finance Australia, brings TNG’s support funding to $600 million. The company has also received letters of interest from seven Australian and international commercial and investment institutions.

The company said the latest development is a significant milestone for the funding of its Mt Peake vanadium-titanium-iron project. Mount Peake is one of the largest undeveloped projects of its kind and has been awarded Major Project Status by both the Australian Government and NT Government.

TNG managing director and CEO Paul Burton said that the company also received an expression of interest from seven tier-one Australian and Asian and European project finance banks, reflecting the quality of the Mt Peake project and the important role it could play as a long-life critical minerals project in the accelerating global energy transformation.

The company and its advisors will progress customary due diligence with the commercial lenders, EFA and Euler Hermes.

Elmore buys the Peko project in NT for $30 million

Elmore (ELE) has finalised an agreement to buy the Peko project, along with all related project companies, in the Northern Territory for $30 million. The move will allow ELE to broaden its focus from minerals processing to open pit and underground mineralisation, including the substantial exploration potential of the tenements.

As part of the agreement, ELE will pay $30 million to buy the NT-based project and guarantee the performance of a pre-existing royalty agreement between ICA group and its retiring shareholders, Peko Gold Lending, to receive a total of 20,000 ounces of gold.

David McIntosh of Peko Gold Lending said the knowledge and skills of the Elmore Board are “much better positioned” to gain the most benefit from the mine, to make it work commercially and to give the best returns for all investors.

Vimy Resources crosses uranium at Angularli

Vimy Resources (VMY) has intersected uranium mineralisation at its Angularli Deposit in the Northern Territory. VMY said results from the two holes that extended the deposit 200 metres up-dip above the unconformity boundary.

Up to 1.42 per cent uranium oxide was intersected and additional drilling will be undertaken up-dip from the current holes to further extend the mineralisation. The company said drilling will be undertaken at the Angularli North Prospect and along strike of the Angularli fault with results to be incorporated into the mineral resource estimate.

VMY CEO and managing director Steven Michael said their team is excited by the early success achieved in the first two holes at Angularli, which is believed to contain the highest uranium grade of any known uranium resource within Australia.

Mr Michael said the first two holes demonstrate the growth potential of Angularli to rise in scale and value. “Drilling continues with additional up-dip and down-plunge holes and Vimy expects to update the mineral resource in late 2022,” he said.

Central Petroleum updates on Palm Valley drilling

Central Petroleum Limited (CTP) advised that the Palm Valley 12 (PV12) well in OL3, southwest of Alice Springs has reached a depth of 1,852m in the P2 unit of the Pacoota Formation.

CTP said the horizontal drilling of the previously announced exploration target of the lower P2 and P3 units of the Pacoota Formation in PV12 ST1 has started, and that 40 metres of the vertical to horizontal wellbore bend has already been drilled into the central P2 formation.

CTP said that a liner and cement shoe will be set at 2,020 metres in measured depth, from which up to 1,000 metres of open hole drilling will begin, targeting gas production from the lower P2 and P3 formations.

The objective of the sidetrack is to test the vertically fractured lower P2 sandstone, encountered in the original well, from a horizontal well bore for approximately 450 metres before entering the P3 sandstone and drilling a further 450 metres interval at a nearly horizontal angle.

The PV12 ST1 well is being drilled under a joint venture between CTP, with 50 per cent interest; New Zealand Oil & Gas Limited, with 35 per cent interest; and Cue Energy Resources Limited, holding a 15 per cent stake in the project that is planned to be completed this year.