Eclipse Metals Limited (ASX: EPM) lately notified about the termination of Liverpool Uranium Project Farm-In and Joint Venture Agreement. In a market release to ASX, Eclipse Metals Limited (ASX: EPM) announced that it has received the notification from Rio Tinto Exploration Pty Ltd that said that the time allotted to satisfy certain conditions in relation to Liverpool Project Farm-In and Joint Venture Agreement has expired. That means the regulatory condition precedents were not satisfied and accordingly, the Agreement among North Minerals Pty. Ltd, Eclipse Metals and Rio Tinto has been terminated automatically.
Background of the agreement: In 2016, Eclipse Metals Ltd and its wholly owned subsidiary North Minerals Pty Limited entered into Farm-In / Joint Venture Agreement with Rio Tinto Exploration Pty Ltd. Under the Agreement, Rio Tinto got the right to farm into Eclipse’s Northern Territory Liverpool Uranium Project tenements. Moreover, Rio also had the option to earn up to 90% interest in one of the five Eclipse Liverpool project uranium-gold-palladium tenements if it fund up to $5 million exploration expenditure. The Agreement provided Rio Tinto to have the right of first refusal over the Company’s other tenements in the Northern Territory.
But now this agreement is reportedly terminated, and both Rio and Eclipse have confirmed to work closely for an orderly transition of the continuing rights and obligations.
For the quarter ended 30 September 2018, Eclipse metals had the cash and cash equivalents of $581,000 compared to previous quarter’s balance of $687,000. On activities front, Eclipse Metals Limited reassessed the geophysical data and sample results of Amamoor project to better understand the depositional structure of manganese mineralisation.
The company told multielement sample analyses have identified a suite of elements that can be used to recognize prospective lithologies and vector towards mineralised zones. These elements constitute a lithogeochemical tool-box for MnO exploration at Amamoor. This lithogeochemical tool-box contains the following six elements - As, Sb, Sc, Zr, Ti & Hf. With the evaluation of these trace element analyses, there is a high possibility that pathfinder elements would assist Eclipse with future geochemical surveys to locate high-grade manganese mineralisation.
Recently, the company has announced the intersection of massive and brecciated Manganese Oxide mineralisation from the drilling undertaken at several locations in Amamoor, Mary Valley Manganese Project. The best intersection reported by the company was 3.2m @ 59.8% MnO from 8.8m in Hole ADD006. These shallow high grade intersections indicate multiple lenses open in all directions at Amamoor, as per Eclipse. Moreover, 3D gravity interpretation reportedly indicates that detailed gravity surveys together with magnetic surveys would greatly assist in determining decisive targets for further drilling.
Over the past one year, Eclipse’s stock price has fallen by 73.33%, but a significant rebound can be seen in its performance since the past three months. It translates a positive performance change of 14.29% over the past three months, as at December 07, 2018, and there has been no price movement since then.
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