Stockman

Stockman Project

Ownership
IGO 100%

Location
460km by road north-east of Melbourne, Eastern Victoria.

The proposed project is on mining tenements located approximately 19km east-south-east of Benambra in the East Gippsland region.

Location map including the Mining Tenement MIN5523
Location map including the Mining Tenement MIN5523

Background and History

The Stockman Project was acquired by IGO in 2011. The Stockman Project encompasses two copper-zinc-lead-silver-gold deposits, Wilga and Currawong, which were discovered in 1978 and 1979. The larger Currawong deposit is intact, whilst a core of copper-rich ore from the Wilga deposit was mined and processed onsite between 1992 and 1996.

Geology

The Wilga and Currawong Volcanogenic Massive Sulphide deposits are hosted within the Silurian age sedimentary basin which forms part of the Lachlan Fold Belt. Both deposits are approximately 350m in strike and dip extent, dip shallowly to the north and are located some 100m below the surface. The Currawong deposit comprises five massive sulphide lenses and associated stringer style mineralisation stacked by a series of post-mineralisation faults. Located approximately 4km to the south, the Wilga deposit comprises a single massive sulphide lens with an extensive halo of stringer style mineralisation. The sulphide mineralogy is predominantly pyrite, sphalerite, chalcopyrite and galena.

The Currawong massive sulphide lenses contain copper-rich domains that reflect both primary hydrothermal fluid pathways as well as zones of remobilised copper which are controlled by post mineralisation shears. Resource drilling by IGO has resulted in better definition of structural controls and grade/ metal zonation, as well as some incremental extensions to mineralisation. The structural complexity of the larger landholding is being interpreted with a view to gaining a greater understanding of the potential for additional host stratigraphy under barren cover in the vicinity of the two deposits, as well as regionally.

Divestment

In June 2017, IGO advised it had entered into an agreement to sell its Stockman Cu-Zn Project for a consideration of A$47.2 million, comprising A$32.2 million in cash payments1 and a 1.5% net smelter return (NSR) royalty with a provisional value of up to A$15 million2, which then converts to an uncapped 1% NSR.

The sale of the Stockman Project is consistent with IGO’s strategy of focusing on high-quality assets of scale, longevity and geographical focus, where IGO can leverage its operational expertise and discipline to unlock further growth opportunities.

As a result of the sale, IGO recorded an after-tax impairment on the Project in FY17 of A$17 million, based on the current carrying value of the asset.

A binding asset sale agreement has been entered into between IGO and CopperChem Limited (CopperChem), a wholly owned subsidiary of Washington H. Soul Pattinson and Company Limited (WHSP).

 

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