Rio Tinto, LCL sign agreement for Ono Project in Papua New Guinea

Rio Tinto Exploration has signed an statement with LCL Resources to earn-in to the Ono Project successful Papua New Guinea.

The statement allows Rio Tinto to gain an archetypal 51% involvement successful the mining task by investing astatine slightest A$8m ($5.61m) successful exploration activities, which volition see a minimum of 4,000m of drilling.

This collaboration aims to uncover porphyry copper-gold deposits.

Further rights alteration Rio Tinto to summation its involvement to 80% by committing an further A$40m towards exploration oregon by defining a mineral assets compliant with the Joint Ore Reserves Committee (JORC) standards.

The assets indispensable comprise astatine slightest 1.25 cardinal tonnes of contained metals connected a copper-equivalent ground and beryllium accompanied by a scoping study.

LCL volition initially negociate the task and person a absorption interest equivalent to 10% of the expenditure.

The Ono Project is situated wrong the Owen Stanley Metamorphic Belt, astir 150km southbound of Lae port.

This country is known for hosting important mineral resources specified arsenic the Hidden Valley golden excavation and the Wafi-Golpu copper/gold project.

The project's exploration licence includes the Kusi Gold skarn assets and an exertion for the contiguous Kau Creek area.

The strategical concern is expected to supply important exploration funding, underscoring the imaginable of the Ono Project fixed caller high-grade golden and metallic findings.

The statement outlines that Rio Tinto volition marque full currency payments of up to A$1.5m to LCL, disbursed successful phases linked to circumstantial milestones.

During the archetypal signifier of the farm-in agreement, if exploration licence exertion ELA2837 faces delays oregon rejection, amendments to Rio Tinto's minimum committedness whitethorn beryllium negotiated.

LCL Resources enforcement president Chris van Wijk said: “This transaction is simply a transformational measurement for LCL. Partnering with Rio Tinto brings world-class exploration capableness and important backing to the Ono Project, enabling a level of exploration enactment that would not different beryllium imaginable for a institution of our size.

“Importantly, the operation allows LCL shareholders to clasp important vulnerability to exploration occurrence and immoderate imaginable discoveries funded by Rio Tinto. We look guardant to watching the Ono Project make alongside 1 of the world’s starring miners.”

In 2024, LCL received a wood usage licence for the Miraflores golden deposit, portion of the company’s Quinchia Gold Project successful Colombia.

"Rio Tinto, LCL motion statement for Ono Project successful Papua New Guinea" was primitively created and published by Mining Technology, a GlobalData owned brand.