REG - New Frontier Mineral - Strategic alliance to process NFM copper ore

New Frontier MineralsAnnouncement

21/01/2025 07:00

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RNS Number : 0320U  New Frontier Minerals Limited  21 January 2025

21 January 2025

 

New Frontier Minerals Limited

("NFM" or the "Company")

 

Strategic alliance with Austral Resources to process NFM copper ore

 

New Frontier Minerals Ltd (LSE and ASX: NFM) is pleased to announce it has
entered into a Memorandum of Understanding ("MOU") with Austral Resources Ltd
(ASX: AR1) to establish a strategic framework to leverage their combined
strengths to demonstrate integrated scale across the Mt Isa copper belt. In
turn, through working collaboratively on a best endeavours basis, NFM and AR1
have an excellent opportunity to maximise the exploration and mining potential
from their enlarged asset base.

 

Highlights:

 

·    NFM has signed a MOU with Austral Resources (ASX: AR1) to formalise a
strategic alliance leveraging the two groups Mt Isa copper belt assets.

·    The combined footprint, complemented by AR1's copper processing
plant, provides a compelling integrated scalable asset base that delivers
significant exploration and mining potential.

·    NFM's initial objective is to provide copper ore from the Big One
Deposit (MRE: 2.1Mt @ 1.1% Cu)(1), potentially expanding this to other
satellite prospects within the NWQ Copper Project.

·    AR1 will process copper ore supplied by NFM at its Mt Kelly facility,
provided metallurgical test-work confirms it passes necessary input grade
criteria.

·    This is a win-win alliance as it provides NFM impetus to expedite
developing the NWQ Copper Project with a clear path to production, while AR1
potentially secures a new source of copper ore to process.

 

Ged Hall, Chairman, commented: "This is an excellent outcome for both groups
that has the potential to create significant value for stakeholders. For NFM,
it provides a potential path to production for copper ore from satellite
deposits across the NWQ Copper Project, while Austral Resources secures a new
source of feedstock for its Mt Kelly processing facility. The NFM team looks
forward to working closely with counterparts at Austral Resources to maximise
the exploration and mining potential from this strategic alliance."

STRATEGIC ALLIANCE WITH AUSTRAL RESOURCES

On multiple levels, forming a strategic alliance with AR1 has the potential to
create significant value for stakeholders. The most immediate compelling
argument is the size of NFM-AR1's combined footprint across the Mt Isa copper
belt which now stands out in a region that is dominated by the major global
miners including BHP, Anglo American and Glencore.

Figure 1: Mt Isa Copper Belt - Major Players (Source: NFM geology team)

For NFM, the key positive from entering this strategic alliance is the
potential to have a path to production for copper ore from the NWQ Copper
Project, while AR1 can boost throughput for its processing facility at Mt
Kelly.

MOU - FRAMEWORK

NFM and AR1, on a best endeavours basis, plan to establish a strategic
framework to leverage their combined strengths to demonstrate integrated scale
across the Mt Isa copper belt. In turn, this alliance can work towards
realising the full exploration and mining potential of the enlarged asset
base.

To achieve this outcome, NFM and AR1 plan to work collaboratively on
progressing the following steps:

·    Formalising a processing agreement whereby NFM will initially supply
copper ore from its Big One Deposit within its NWQ Copper Project and if
feasible, other prospects within its tenure.

·    AR1 will process ore, supplied by NFM, at its Mt Kelly facility if it
meets necessary input grade criteria and adds value.

·    NFM will seek necessary regulatory approvals to have an 11,000t
stock-pile at the Big One Deposit undergo metallurgical test-work through
AR1's facility.

·    Both groups will negotiate a profit-sharing formula, which is
mutually beneficially to ensure neither party will incur any losses because of
entering into a formal contractual arrangement.

In terms of specific undertakings, NFM will be responsible for starting work
on the following areas:

·    Applying for a mining lease over the Big One Deposit, which is a
significant commitment that can take 18-24 months to secure a favourable
decision from the regulator.

·    Seek permission to commence trial mining and process the existing
copper oxide stock-piles.

·    Secure landowner agreement and work out an appropriate compensation
formula.

·    Conduct further drilling campaigns to expand the known resource at
the Big One Deposit.

·    Commence exploring other prospective targets within the NWQ Copper
Project for potential satellite deposits.

 

For its part, AR1 will assist with facilitating the following:

·    Conduct necessary metallurgical test-work to ensure any copper ore
from the Big One Deposit and other potential prospects within the NWQ Copper
Project satisfies the input criteria to be processed at the Mt Kelly plant.

·    Provide supporting information, if required, to assist NFM with its
mining lease application.

 

Figure 2: Mount Kelly Copper Processing Facility (Source: Austral Resources)

Both groups agree to work towards achieving a mutually beneficial outcome
which would then lead to agreeing commercial terms and producing formal
documentation.

Next Steps

NFM's team to meet with AR1's team in Queensland to map out a work program to
further develop the Big One Deposit and commence metallurgical test-work on
historical copper ore stockpiles.

 

For further information please contact

 

 

 New Frontier Minerals Limited                                       +61 8 6558 0886 
 Gerrard Hall (UK), Chairman                                          
                                                                      
 SI Capital Limited (Financial Adviser and Corporate Broker)         +44 (0)1483 413500 

 Nick Emerson                                                          
                                                                       
 Gracechurch Group (Financial PR)                                    +44 (0)20 4582 3500
 Harry Chathli, Alexis Gore, Henry Gamble                             

 

 

ABOUT NEW FRONTIER MINERALS

 

New Frontier Minerals Limited is an Australian-based focussed explorer, with a
strategy to develop multi-commodity assets that demonstrate future potential
as an economic mining operation. Through the application of disciplined and
structured exploration, New Frontier has identified assets deemed core and is
actively progressing these interests up the value curve. Current focus will be
on advancing exploration activity at the Harts Range Niobium, Uranium and
Heavy Rare Earths Project which is circa 140km north-east from Alice Springs
in the Northern Territory.

Other interests include the NWQ Copper Project, situated in the copper-belt
district circa 150km north of Mt Isa in Queensland and the Broken Hill Project
in western New South Wales.

New Frontier Minerals is listed on the LSE and ASX under the ticker "NFM".

References

1)    CCZ ASX Release - 28 February 2022

 

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