Indian support for South Australian iron ore project

first_imgLincoln Minerals has concluded a Joint Venture Agreement with Mineral Enterprises Ltd (MEL) of Bangalore, India and Mineral Enterprises Australia, in respect of Lincoln’s 100% owned EL3422 (Gum Flat) tenement near Port Lincoln on the southern Gawler Craton, South Australia. This follows a Heads of Agreement signed between MEL and Lincoln in August 2007.ME Australia has contributed A$500,000 of funding in respect of the initial drilling programs at Gum Flat to reach the first ‘minimum expenditure’ milestone. This was achieved following completion of a diamond core drilling program in December 2007. The essence of the JV Agreement provides that, subject to rights to withdraw, ME Australia will earn a 20% interest in the Gum Flat project by contributing a further A$500,000 of exploration expenditure by 31 December 2008. Subject to rights to withdraw, ME Australia can earn an additional 20% in the project by contributing a further A$1.5 million of exploration expenditure by December 31, 2010.MEL will act as guarantor to the project. In August 2007, MEL subscribed for 3,500,000 fully paid ordinary shares in Lincoln to raise A$1,050,000. ME Australia is a subsidiary of MEL, a diverse Bangalore based corporation with interests in mining, power, infrastructure and bio-diesel. MEL has been extracting iron ore and manganese ore for over four decades and has substantial iron ore reserves in the Chitradurga and Turnkur Districts of southern India. www.mineralenterprises.org Lincoln says: “This is an exciting development and will enable the company to continue to maximise the iron ore potential of the Gum Flat project. Drilling since August 2007 has confirmed that there is hematite banded iron formation (BIF) grading up to 56.6% Fe overlying significant intervals of coarse grained magnetite BIF. As previously advised, the conceptual magnetite BIF exploration target at Gum Flat is in excess of 250 Mt within 20 km of the port of Port Lincoln.last_img read more

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