The initial agreement provided for YTC to earn up to a 70% interest in the project from Straits' wholly owned subsidiary Templar Resources by sole funding exploration expenditure of A$1.5 million by 18 December 2012.
The new agreement will see YTC acquire full ownership of the project by issuing $250,000 worth of shares at $0.286 each.
The agreement is subject to the approval of the tenement transfer to YTC or its nominated subsidiary from the NSW Department of Trade and Investment (Resources & Energy).
As of the date of the agreement, YTC had sole funded about A$1.25 million of exploration expenditure, and recently completed a 1,830 metre aircore drilling program testing the oxide zone above the Doradilla tin deposit.
The Doradilla Project hosts a 16 kilometre long tin-mineralised skarn referred to as the DMK Line, which hosts the tin-skarn deposits of Doradilla, Midway and 3KEL.
Tin mineralisation occurs as fine grained cassiterite within the Doradilla primary zone and as silicates in the Midway and 3KEL primary and oxide zones.
Historical exploration has concentrated on the primary zones of Doradilla, Midway and 3KEL, with YTC more focused on the oxide deposits.
In addition to tin, the Doradilla Project also represents a strong exploration target for nickel, copper, silver, bismuth, zinc and indium.
Previous exploration has highlighted the large scale of the mineralisation.
Some of the stronger results from historic and YTC drilling include:
- 6 metres at 1.16% tin and 0.11% copper;
- 7 metres at 1.2% tin - the deepest hole into Doradilla deposit);
- 38 metres at 0.53% tin - Doradilla Oxide Zone; and
- 1.5 metres at 683 grams per tonne (g/t) silver and 1.2% bismuth.
- 40 metres at 1.5% tin, 0.52% copper, 110 parts per million (ppm) indium and 0.35% zinc, including 18 metres at 3.04% tin, 0.85% copper, 230ppm indium and 0.73% zinc; and
- 42 metres at 1.32% tin, 40ppm indium, 0.23% zinc and 0.18% bismuth including 10 metres at 4.44% tin and 106ppm indium and 0.1% bismuth.
- 5.5 metres at 0.36% WO3
In 2008 YTC completed an aircore drilling program at 3KEL to validate previous drilling and provide an Inferred JORC resource of 7.8 million tonnes at 0.29% tin for the oxide zones at Midway and 3KEL.
The deposits also contain potentially economic levels of copper, zinc and indium which were not included in the resource estimate.
YTC has also completed a metallurgical program on the 3KEL oxide material which suggested tin-fuming was a potentially viable process available to extract the tin.
A potential tin fuming process would require a substantially larger resource base to be delineated.
Importantly, the potential for a larger resource base is considered to exist along the untested oxide extension of the DMK line.
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