Outback Metals agrees to sell Northern Territory gold and rare...

Outback Metals agrees to sell Northern Territory gold and rare earth project for $1.5 million
Tuesday, April 10, 2012 by Christine Feary


Outback Metals (ASX: OUM) is set to sell the Wingates Gold and Rare Earth Project in the Northern Territory to China’s Hunan Non-ferrous Geology and Exploration Bureau for consideration of A$1.5 million.

The agreement, with Hunan’s wholly owned subsidiary China Australia Land Resources, comprises eight tenements in the Wingates Mountains, 250 kilometres south of Darwin.

Wingates is located in the vicinity of the Giants Reef/Victoria River Fault Zone, which is a potential source of mineralised fluids.

Recent exploration studies within the project areas have identified anomalous uranium, gold, platinum, paladiun, base metals and manganese.

Hunan already operates five mines in China and has recently established a number of resource exploration bases in Africa, South America and Southeast Asia among other regions.

The agreement with Hunan is subject to regulatory approvals by Australia’s Foreign Investment Review Board and the Chinese authorities.

Outback Metals’ other projects in the Northern Territory include Mt Wells, located on an elevated hill that contains en-echelon lodes of copper and tin ore, where drilling is planned for June this year, and the Maranboy/Yeuralba tin field.