JSE- and NYSE-listed AngloGold Ashanti has advanced four of CSE-listed Inflection Resources’ copper/gold projects in New South Wales, Australia, to the next phase of an exploration earn-in agreement, committing further investment into the early-stage assets. 

The decision follows the completion of Phase 1 of the partnership, under which AngloGold Ashanti invested A$10-million in Inflection’s exploration portfolio.

Under Phase 2, the Johannesburg-based gold miner can secure a 51% interest in the Duck Creek, Trangie, Crooked Creek, and Nyngan projects by spending A$7-million on exploration at each over three years. A further two stages could see its stake rise to 75% if it funds additional exploration and completes a prefeasibility study (PFS).

"The completion of the Phase 1 agreement with AngloGold Ashanti is a major milestone for the company. We are extremely pleased that AngloGold Ashanti has selected four projects to advance to Phase 2 as this will provide the necessary capital to drill and potentially develop these projects within the northern extension of the Macquarie Arc," Inflection CEO Alistair Waddell said in a statement.

Following the conclusion of Phase 1, AngloGold Ashanti has also exercised its right to acquire a 9.9% equity position in Inflection. The company will issue 11.13-million shares to AngloGold Ashanti at C$0.808 a share.

The next phase of exploration is already under way, with step-out drilling at the Trangie project targeting gold/copper mineralisation identified earlier this year.

The agreement allows AngloGold Ashanti to increase its stake to 65% by sole funding an additional A$20-million per project in Phase 3. In Phase 4, the miner could secure an extra 10% by completing a PFS and granting Inflection a net smelter return royalty of up to 2%, subject to existing underlying royalties.

The remaining projects from the initial earn-in agreement will stay fully owned by Inflection, as AngloGold Ashanti has relinquished its rights to them.

The decision to progress four of the projects underlines AngloGold Ashanti’s strategy to expand its copper/gold exploration footprint in Australia while taking an equity position in a junior partner with prospective assets.