Iron ore major Fortescue Metals Group is set to launch exploration efforts in Western Australia’s North West.
Signing a farm in and joint venture agreement with explorer Riedel Resources on Thursday, the deal is estimated to be worth up to $1 million.
Located 50 kilometres south-east of Marble Bar in the Pilbara, Riedel’s Charteris Creek project is 131km2 and contains numerous gold, copper, base metals and iron ore deposits.
To date only limited exploration has been carried out on the tenement.
Under the new agreement if Fortescue spends $200,000 on exploration within three years the company has the ability to earn a 51 per cent interest in the tenement.
By spending an additional $400,000 in the same timeframe the iron ore miner will be allocated an additional 14 per cent stake.
Allocating another $400,000 will earn Fortescue an extra 15 per cent share.
If Fortescue meets all milestones the company will hold an 80 per cent interest in the tenement and a joint venture between the two parties will be established.