The Clermont Copper/Gold Project (EPM 17968) is situated around the town of Clermont in central Queensland. The project is prospective for porphyry and stratabound bulk tonnage copper/gold deposits along with mesothermal gold deposits.
The project area covers numerous prospects including the Rosevale Project and the historic Peak Downs Copper Mine.
The three main targets comprise:
- Rosevale Porphyry Corridor, which has potential for porphyry-related copper, gold and molybdenum;
- Structurally controlled gold (vein) mineralisation (western and eastern parts of tenement); and
- VMS-related base metal mineralisation associated with the historic Peak Downs copper mine.
On 5 August 2021, Diatreme announced a farm-out with Metallica Minerals Limited (ASX:MLM) under which Metallica can earn a 25% interest in the project by sole funding exploration expenditure of A$300,000 by 31 December 2021.
Metallica can earn an additional 26% interest by sole funding exploration expenditure of an additional A$700,000 by no later than 12 months after 31 December 2021. After spending this amount, Metallica has the right to sole fund the first A$1 million of joint venture expenditure to earn an additional 24% interest.
Should Diatreme and Metallica make the decision to mine, Diatreme will be granted a 1% net smelter royalty.
On 26 October 2021, Metallica requested an extension to the initial expenditure stage, which was agreed by Diatreme and extended to 29 April 2022. Metallica announced on 19 January 2022 its plans to undertake drilling at the project during the first quarter 2022, subject to weather conditions.
The key terms of the MOU now comprise:
• Metallica to invest a minimum of $300,000 on exploration expenditure no later than 29 April 2022 to earn a 25% interest in the project;
• Should Metallica commit to continue to invest in the project, by investing a further $700,000, Metallica will gain an additional 26% interest;
• Metallica will then have the right to invest a further $1 million in the joint venture to hold a 75% interest;
• The partners will then be entitled to contribute further funding to the project on a pro-rata basis.