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YTC Resources Adds To Exploration Intrigue With OZ Minerals Tenements At Nymagee

YTC Resources (ASX: YTC) has increased its landholding in the mineral-rich Cobar Basin with the acquisition of a tenement immediately surrounding its Hera-Nymagee Project.

The company executed a deal with OZ Minerals' (ASX: OZL) subsidiary OZ Exploration to purchase the tenement, which has been shown to host a number of exploration targets to the east and north of the Nymagee deposit.

The significance of the acquisition is it advances the company along the Rookery Fault which hosts the CSA Mine operated by Glencore International (LSE: GLEN), 90 kilometres north and along strike of Nymagee.

Importantly, it adds to the upside for YTC on top of Nymagee and Hera.

Highlighting the potential of Nymagee, the deposit has previously demonstrated analogies to the CSA Mine.

By way of scale, the mine produces over 1.1 million tonnes of copper ore and in excess of 185,000 tonnes of copper concentrate per annum.

The concentrate contains around 29% copper metal and is exported to smelters in India, China and South East Asia.

YTC continues to unearth new targets at the deposit which highlight the potential for Nymagee North to become a new Cobar-type deposit at depth.

Earlier this month the company received assays from a further three diamond drill holes completed at Nymagee North, about 500 metres north of the Nymagee Deposit.

Notable intersections from two of the holes include 2 metres at 2.7% lead and 4.8% zinc from 287 metres and 5 metres at 1% lead and 1.9% zinc from 351 metres.

These holes were designed to follow up a previously reported intersection of 14 metres at 63 grams per tonne (g/t) silver, 0.2% copper, 2.7% lead and 5.2% zinc.

Nymagee hosts a Resource of 8.1 million tonnes at 1.2% copper, 0.3% lead, 0.7% zinc and 9g/t Ag.

Scoping level feasibility studies have begun with a view to integrating the Nymagee deposit as a Stage 2 development to the Stage 1 development of the nearby Hera gold deposit.

The Stage 1 development of the Hera-Nymagee Project is expected to be a relatively low-cost, high grade mining operation on the Hera deposit, producing around 50,000 ounces of gold equivalent per annum over a minimum life of 7 years. The Hera Definitive Feasibility Study indicates a C1 operating cost of A$395 per ounce, after lead-zinc credits.

Feasibility work to date includes initial metallurgical studies showing the Nymagee copper mineralisation capable of producing high quality copper concentrates at high recoveries.

Deal terms

YTC will settle the deal through the issue of 555,556 shares at A$0.45 each, valuing the share issue at $250,000.

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