Australian based mineral exploration company Venture Minerals Limited (ASX code: VMS) has signed a Joint Venture agreement with Orogenic Exploration Pty Ltd (Orogenic) to acquire a tenement adjacent to its Churchill Dam Iron-oxide-Copper-Gold-Uranium (IOCGU) project in South Australia.
This 471km² tenement contains a number of drill targets that complement those already identified on the tenement held by Venture. As part of the agreement Venture will earn a 90% interest in the nondiamond rights of the tenement by spending A$750,000 over the next three years.
Orogenic will receive an initial payment of $11,000 and will be free carried up to the decision to mine, and may then elect to contribute or take a payment of $500,000 and 1.5% of the net smelter return.
Orogenic retains all diamond rights to the tenement.
The new acquisition contains a number of drill target areas within the tenement and following a review of geological data has lead to the identification of a number of new drill target areas within the original tenement held by Venture, all of which are prospective for IOCGU type mineralisation as based on the highly successful drilling done to date at Churchill Dam (see attached map).
By applying the same principles previously used in interpreting a "caldera" (large volcanic crater-style structure) within the Gawler Range Volcanics at Churchill Dam, an adjoining second caldera feature can be interpreted to be sitting to the northeast and within the area of the new acquisition.
Consequently, the Company will now further extend its detailed ground based geophysical survey (due to commence shortly) to cover the new additional drill targets and the interpreted second caldera structure.
This announcement follows last week's confirmation that Venture Minerals had arranged a placement of 6.5 million ordinary shares in the Company to raise $2,145,000.
The funds raised will be used for exploration at Venture's existing tenement at Churchill Dam. The Company has recently drilled two RC/Diamond holes into the project, both intersecting at least 150m of altered Gawler Range Volcanics.
The Company believes the brecciation and alteration style intersected in the first two holes is consistent with mineralised IOCGU systems within the Olympic Dam province of South Australia. Assay results on the first two holes are pending.
The success from the first two holes have encouraged the Company to proceed with an aggressive four - eight hole program of diamond drilling at the project expected to cost up to $2m.
Venture Mineral's Churchill Dam Project is well situated within the Olympic Dam IOCGU province, approximately 95km west of the recently discovered Carrapateena Prospect, 100km northwest of the recently discovered Punt Hill Prospect and 90km southwest of the world class Olympic Dam Mine.
A positive announcement with the increased land holding adjacent to its Churchill Dam Project giving VMS further drilling targets in a prospective area. It finished up 2 cents yesterday albeit on small turnover. I don't hold any at present, but am monitoring the situation carefully.todays news:
They are still holding in excess of a million shares and they have a truckload of options from the 1 for 3 issue. Taking some profits is allways encouraged here and I would do the same if I was in they same situation.
Selling by Credit Suisse is clearly a bearish sign. Credit Suisse built up quite a stake at lower levels and is no doubt taking its profits off the table. Overall, VMS has had an excellent run of late and its not surprising that Credit Suisse have got rid of most of its holding. Still, as has been alerted in previous postings, VMS has plenty of potential. For me its just a question of how much am I prepared to pay for it. Good luck to VMS shareholders.
DYOR
To buy back in is a positive sign coming from Credit Suisse. With further drilling planned at Churchill Dam interesting days lie ahead for VMS. As I've mentioned in an earlier post, | tried to buy back in around the 33c mark, but missed out on a recent pullback. I'm not prepared to chase stocks where possible.Hey fellas in reference to this previous exchange of messages, it appears that indeed the sell off by Credit Suisse was largely a move to take some profits. I found it interesting that they have increased their holding on a rather regular basis since the sell off, especially towards the end of last week where they acquired almost 200k shares, culminating in today's notice. What are your thoughts on this?
Hi Kennas,Still waiting for those CD results.......
The market liked the ann just out. Although I'm skeptical about the prospects of U explorers in WA at the moment, the tennaments do look very prospective. Map attached to the ann displays them well, if anyone's interested.
This company has been slow in all respects, with announcements, drilling, delays etc. I often feel that when companies have good news to release they tend to do it earlier rather than later. Nonetheless, its sometimes hard to guess what VMS management are thinking. Still VMS has numerous interesting prospects, but there's clearly a need for a better PR machine.Kennas those CD anns were due out two weeks ago, should we be expecting good or bad news when they eventually come out? They have been quite slow to release news of any kind in recent months.
I agree. I think the assays from CD will turn them one way or the other. If the results come back with IOCGU, then it should be well supported. If it's dirt, then expect it to be duly smashed!These guys have really bad sentiment behind them after so many got burned on the dummy run to mid 50's.
I agree they have small market cap, and some good upside potential.
But i dont think they'll get good attention and rerating untill good news comes out better than just some ok looking holes.
Ann out on drilling at CD. A third hole is being dug and they have slipped in the results from the first 2 holes in scant detail. Scant because they may not be that hot perhaps.I agree. I think the assays from CD will turn them one way or the other. If the results come back with IOCGU, then it should be well supported. If it's dirt, then expect it to be duly smashed!
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