Territory Resource Wrap – May 25

by | May 25, 2022 | News Brief | 0 comments

The NT Independent is providing you with an update of resource news from across the Northern Territory.

This week, the NT Government legislates its support for Sun Cable, Ragusa set to expand lithium holdings with NT farm-in deal, TNG Limited completes aquifer extension water bore, plus more.

NT Government backs Sun Cable’s powerlink project to Singapore with legislation

The Fyles Government has passed legislation to enshrine its commitment to the $30 billion Sun Cable project, despite Singaporean energy experts questioning its viability amid stiff competition. The NT Government said the legislation will “clarify and streamline existing processes, increase project certainty, and support Sun Cable to secure project funding”. The Opposition CLP questioned why this wasn’t happening for other major projects in the NT.

Meanwhile, Sun Cable is facing competition from other solar projects much closer to Singapore, including a 3.5GW solar farm planned in the Riau Islands in Indonesia, another project pitched only 50km away, as well as plans to further develop a regional power grid that could see Singapore import hydro-electricity from Laos. Sun Cable remains optimistic its project is feasible and will work, saying Singapore will source renewable energy from different countries.

Ragusa set to expand lithium holdings with NT farm-in deal

Ragusa Minerals (RAS) has entered into a farm-in agreement with May Drilling to obtain a 90 per cent interest in five tenements in the Litchfield Pegmatite Belt in the Territory.

Under the contract, RAS will be conducting due diligence work in the area, including exploration activities on the tenements. The tenements have good prospects for lithium. RAS targets outcropping pegmatite rocks identified in historical exploration.

Upon completion of the farm-in period, RAS will enter into a joint-venture agreement with May Drilling with RAS owning 90 per cent of the tenements. RAS was also given the option to acquire the remaining 10 per cent interest in the tenements.

Under the agreement, RAS will pay $125,000 to May Drilling to be able to conduct due diligence for 12 months. It was also stated that if RAS chooses to proceed with the contract, additional payments will be made to May Drilling, with a minimum spend of at least $2.5 million on the project.

“Ragusa is in a strong position to rapidly accelerate the development of our project at a time of record lithium prices and within a proven high-quality lithium district,” RAS chairman Jerko Zuvela said.

TNG completes aquifer extension water bore

TNG Limited (TNG) said it has finished its water bore drilling program at its flagship Mount Peak Vanadium-Titanium-Iron Project in the Northern Territory. The water bore drilling and assessment program will provide a sustainable water supply for the entire Mount Peake mine site, which has an initial mine life of 40 years.

The borefield area is situated along the Hanson River on Stirling Cattle Station, which is between 20-35km from the Mount Peake Project. The Hanson paleochannel has a source area in the Ti Tree Basin to the south-east and flows approximately 400km northwards to the end west of Tennant Creek under Tanami desert sands.

TNG said this current round of aquifer drill testing has successfully extended beyond the Water Extraction Licence Application (WELA) area and is seen to be a source of satisfactory water quality and sustainable water production within a 75 km distance from the mine site, going both upstream (south-east) and downstream to the north.

The Mount Peak deposit was discovered by TNG in 2008. Deposits in the areas are close to the surface and flat-lying with a JORC Compliant Resources of 160 million tonnes, making it one of the largest undeveloped vanadium-titanium-iron projects in the world.

Emmerson nets $220,000 in extra funding through SPP after a $5m placement

Emmerson Resources Ltd (ERM) is now fully funded to complete upcoming work plans across its Tennant Creek and NSW projects following the completion of a $220,000 share purchase plan (SPP) that sold over 1.9 million shares at $0.115 per share. The new shares have been issued last May 20.

The company said the $5 million in additional funding will be used for the following activities:

  • A 10-hole,2,000-metre reverse circulation and diamond drill program at Hermitage in Tennant Creek, which is now underway;
  • First phase diamond drilling program at the Japer Hills copper-gold-cobalt project in Tennant Creek;
  • Use of additional high-resolution magnetic drone geophysics to pinpoint new exploration targets, especially around the high-grade Edna Beryl gold mine in Tennant Creek;
  • Completion of the 1st phase of RC and diamond drilling at Kiola in New South Wales in the 2nd half of this year to test several compelling geophysical and geological targets derived from a 3D model of the surface; and undertake further early-stage exploration across the Fifield, Wellington and greater Kudangle projects in NSW.

“We thank those shareholders who participated in the SPP for their support during a particularly volatile period in global equity markets,” ERM managing director Rob Bills said.

Central Petroleum PV12 drilling update

Central Petroleum Limited (CTP) said that the company’s Palm Valley 12 (PV12) well in OL3, southwest of Alice Springs in the Territory had already reached a depth of 1,880m in the P1 unit of the Pacoota Formation.

The P1 unit of the Pacoota Formation is the main productive zone in the Palm Valley field and is a proposed sidetrack candidate in this well if the deep exploration target at the Arumbera level is not successful. The Arumbera Sandstone is the company’s primary exploration goal at a projected depth of 3,560 metres.

CTP’s PV12 well—expected to be completed this year— is the first of a two-well drilling program that also includes the Dingo-5 exploration and production well. Both wells are being drilled under joint ventures between CPL, with 50 per cent interest; New Zealand Oil & Gas Limited, with 35 per cent interest); and Cue Energy Resources Limited, which holds a 15 per cent interest.

CTP is the largest onshore gas producer in the Territory, supplying industrial clients and senior gas distributors in the Northern Territory and the Australian east coast market.

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