News: Kunene Resources scores funded copper-gold licence in Portugal

Kunene Resources (ASX:KNE) has secured the 576 square kilometre Alcoutim project in Portugal, which is prospective for copper, gold, zinc and tin.

The project lies on a historic mining area on the Neves-Corvo-trend, 60 kilometres from Lundin’s Neves Corvo mine.

Kunene has concurrently entered into Joint Venture agreement with private funding partner to fund exploration on Alcoutim.

The partner is committed to meet first year exploration commitment with a right to fund €1.2 million for 51% of the project, and a further €1.2 million for a total of 80%.

The Joint Venture is subject to formal documentation and due diligence, to be completed by 14 November.

The Alcoutim licence has been granted for a period of 3 years, extendable by a further two periods of 1 year each.

The Iberian Pyrite Belt, where the project is located, is one of the largest Volcanogenic Massive Sulphide provinces in the world with over 250 copper deposits.

Several historic manganese and copper mines exist on the licence area.

In March, First Quantum Minerals (TSE:FM) signed on to earn an interest in Kunene's Kaoko copper project in Namibia.

First Quantum is committed to minimum expenditure of US$2 million by July 2015 with an option to spend further US$5 million for 51% by June 2017.

First Quantum can also sole fund through to decision to mine for 80%, with decision to mine to be based on a minimum inferred resource size of 2 million tonnes contained copper.

The project covers close to 3500 square kilometres in an emerging minerals province with similar geology to the Central African Copperbelt.

Kunene is valued presently at around $2 million.