HomeMarket NewsMiningGetech and East Star Embark on a Copper Exploration Journey in Kazakhstan

Getech and East Star Embark on a Copper Exploration Journey in Kazakhstan

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Strategic Partnership Forges A Path in Kazakhstan

Getech, a UK-based technology company, has joined forces with East Star to delve into the depths of copper exploration in Kazakhstan. East Star currently holds copper licenses on the Verkhuba deposit, along with licenses for orogenic gold and rare earth prospects in the country. They will take the lead in the application process for new tenements and licenses, as well as spearhead operational activities within the project areas.

Equity Participation Strategy to Lead the Way

In a groundbreaking move, Getech will have a call option to acquire shares at no cost in the joint venture (JV) company, equivalent to 5% of its issued capital, once exploration licenses are secured. This strategic shift marks a departure from the traditional fee income model for Getech, as the company transitions towards asset participation. The move is expected to unlock significant value from its unique data resources.

Unlocking Transformative Value

Getech’s CEO, Richard Bennett, expressed enthusiasm for the collaboration, highlighting the potential for substantial value creation amidst minimal risks. The agreement presents a unique opportunity for Getech to secure a 5% stake in mining assets following a successful exploration campaign. This transformative potential allows for monetization at different stages of the project, paving the way for strategic growth.

Industry Potential and Perspectives

According to East Star’s CEO, Alex Walker, sediment-hosted copper deposits represent a significant portion of global copper production and hold the promise of Tier 1 deposits sought by major mining companies worldwide. The partnership with Getech provides East Star with an additional strategic play in its copper portfolio, complementing existing VMS and BHP-backed porphyry exploration programs.

Exploration Target and Prospects

The Verkhuba deposit boasts a JORC-compliant exploration target of 19-23 million tonnes grading 1.4-1.9% copper equivalent, based on historical drilling data. This rich resource potential sets the stage for a promising exploration journey in the Kazakhstan copper landscape, offering both companies an opportunity for significant growth and value creation.

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