Federation
Octava secures option agreement over the Federation Cu-Zn-Ag Project in Western Tasmania.
Octava has signed a binding conditional share sale agreement to purchase 100% of the shares in Magnes25 from the vendors (shareholders) of the Federation Project. Magnes25 is the registered holder of the Federation Project which comprises tenements EL 16/2023 & EL 1/2023.
Octava now has 12 months from the date of execution to undertake exploration & due diligence investigations.
Upon successful due diligence, in consideration for the acquisition, Octava shall:
- Reimburse vendors for MRT security bonds on EL 16/2023 & EL 1/2023 to an amount of $21,000.
- Reimburse vendors a total of $75k for expenses incurred in maintaining tenements.
- Issue 3,500,000 OCT Shares to Federation vendors (shareholders).
- On the definition of Mineral Resource Estimate (MRE) Cu Eq/Sn Eq equivalent to 100,000 Oz Au, issue to Federation vendors (shareholders) 2,000,000 OCT shares.
- Grant the Federation vendors (shareholders) a Net Smelter Royalty of 1%, with the parties to enter into a formal royalty deed prior to completion.
Federation
The Federation project is located 12km west of the town of Zeehan, in Western Tasmania and comprises 2 granted tenements EL 16/2023 and EL 1/2023 covering approximately 121km2. The project is well located in close proximity to a number of mining centres with processing and infrastructure, as well as a number of Hydro Power Stations.
The project licences are located on the margin of a granite dome known as the Heemskirk Granite, a multiphase intrusion containing various phases of mineralisation which have intruded a sequence of Proterozoic sedimentary rocks. Proterozoic sedimentary rocks. The Proterozoic rocks include quartzite, micaceous quartzite, black shale and carbonate rich beds that have undergone metamorphism. The late stages in the crystallisation of the granite resulted in production of hot saline solutions containing various metals. Large faults in the region provided conduits for these hot metallic solutions to re-mobilise and precipitate and form mineral deposits.
Location Map of the Federation Cu-Zn-Ag Project in Western Tasmania.
Previous Exploration
During the late 1970’s, Renison were exploring for tin deposits in the South Heemskirk Tin Field. In the first year, exploration focussed on the Sweeny’s prospect. A total of eighteen diamond drill holes were drilled into the Sweeney’s prospect. Although eight of these missed the target mineralisation, the remaining ten holes had some significant intersections including:
SWY 11 23m @ 1.19% Cu, 1.70% Zn, 121 g/t Ag & 1.17% Sn from 71m.
SWY 14 24m @ 0.25% Cu, 0.52% Zn, 42 g/t Ag & 0.27% Sn from 112m.
SWY 15 31.4m@ 0.19% Cu, 1.92% Zn, 31 g/t Ag & 0.62% Sn from 210m.
There was also accessory Sb, Pb and fluorite encountered. No further work was done and the mineralisation currently remains open at depth and along (an interpreted SSE) strike.
The wider Federation project area contains a number of additional prospective mineral exploration targets, which will also be investigated in due course.
Tenement location map with regional geology of the Federation Cu-Zn-Ag Project in Western Tasmania.