Canadian exploration company Aldebaran Resources has entered into an option agreement to joint venture with Nuton Holdings, a Rio Tinto venture, on the Altar copper/gold project in Argentina.

The Altar project is owned by Peregrine Metals, in which Aldebaran holds a 60% interest, while Sibanye-Stillwater owns the remaining 40%. Aldebaran is currently in the process of acquiring an additional 20% stake, which will increase its holding to 80%, leaving Sibanye-Stillwater with a 20% interest.

As part of the agreement, Aldebaran has granted Nuton an exclusive option to acquire 20% of Peregrine for up to $250 million. This payment will be made in stages leading up to the completion of a prefeasibility study (PFS) in 2026.

By then, the ownership structure of the Altar project will be divided as follows: Aldebaran (60%), Sibanye-Stillwater (20%) and Nuton (20%).

Aldebaran CEO John Black explained that the agreement with Nuton ensures non-dilutive capital injections to fund future work programmes on the Altar project through to the completion of the PFS.

“Nuton’s proprietary sulphide leaching technologies could add significant value to the Altar project by reducing the costs and capital required for development. Our current plan for the preliminary economic assessment and PFS is to show both Nuton and non-Nuton cases,” Black said.

Nuton CEO Adam Burley noted that the option provides the company with a potential stake in a “very large” copper project in Altar.

“Successful deployment of Nuton Technologies at Altar has the potential to materially enhance the economic and environmental performance of the project,” Burley added.

Nuton, a subsidiary of Rio Tinto, offers a portfolio of proprietary copper leaching technologies designed to improve copper recovery and environmental outcomes, which could provide a significant advantage to the Altar project.

Located in San Juan, Argentina, the Altar project has a 2021 pit-constrained resource estimate of 11.4-billion pounds of copper and 3.4-million ounces of gold in the measured and indicated categories. In addition, the project contains 1.7-billion pounds of copper and 0.4-million ounces of gold in inferred resources.

Since the last resource update, Aldebaran has completed over 63 000 m of drilling and discovered an additional porphyry center, named Altar United. The company is in the process of updating its resource estimate, with results expected in November.