Renegade has entered into an agreement whereby it can earn up to 75% of the North Isa Project which is located directly north of the George Fisher mine and approximately 40km north of Mt Isa township and will control approximately 20km of the Western Fault. The Western Fault and associated faults host the historic Lady Agnes mine. The project straddles the thrust faulted Eastern Creek Volcanics (ECV) and Mt Isa Group sediment boundary with several existing copper mineral occurrences including the Lady Agnes copper mine which is located within an embayment along the faulted ECV/Mt Isa Group contact.
Historic exploration has been sporadic and disjointed with the faulted contact only recently coming under the control of one party, Burke Copper. This will enable a consistent and rigorous exploration program to assess and test the faulted ECV/Mt Isa Group contact and other associated structures of interest.
Figure 1: North Isa Project Permit Location with existing Prospects
Renegade has entered into an Option Agreement with Burke to acquire up to a 75% interest in the North Isa Project on the following terms:
- On execution of the Option Agreement (Commencement) payment to Burke Copper of $20,000;
- Guaranteed expenditure of $100,000 in the twelve months following Commencement and can withdraw subject to having spent the guaranteed expenditure amount;
- In relation to the exercise of the Option Renegade has agreed to issue Burke Copper 10m shares in the capital of Company as well as 25m Performance Rights (converting to ordinary fully paid shares in the Company on a one for one basis) subject to satisfaction of one of the following performance milestones:
- Measured JORC compliant open pit Inferred Resource (verified by Independent Third Party) utilising a cut off of 0.3% to define a minimum 1Mt @ minimum copper grade, or its equivalent, of 1% for 10,000t of contained copper, or its equivalent; or
- Measured JORC compliant underground Inferred Resource (verified by Independent Third Party) utilising a cut off of 0.3% to define a minimum 2Mt @ minimum copper grade, or its equivalent, of 3% for 30,000t of contained copper, or its equivalent; and
- The Performance Rights will expire if the performance milestones have not been satisfied within five years of issue and will also lapse in other certain circumstances such as sale or withdrawal from the Project by Renegade.
- In the period of thirty-six (36) months following exercise of the Option Renegade will spend $400,000 and will have earned its full 75% interest;
- Renegade can spend the minimum expenditure amounts in advance of the prescribed time periods to earn its interest earlier;
- Upon earning its 75% interest, Renegade will free carry Burke Copper to a preliminary feasibility study thereafter the parties will contribute equally or be subject to a dilution clause;
- Renegade will assume JV operatorship upon exercising the option; and
- Subject to meeting it’s full expenditure commitment, if Renegade withdraws from the JV it will retain a 30% interest but return operatorship to Burke Copper.
The North Isa Project is an exciting addition to Renegade’s growing Queensland footprint. The Queensland Government recently released its draft Queensland Resources Industry Development Plan (QRIDP) which seeks to create a strategy for the next thirty years to ensure continued sustainable growth in the resources sector. The QRIDP, in conjunction with recent State and Federal initiatives, provides added support to the strategy in Queensland being pursued by the Company.
Figure 2: Renegade NW Queensland Permit Interests