First Quantum Minerals (TSX: FM) has recently exercised its $12 million earn-in option over Dreadnought Resources’ (ASX: DRE) Mangaroon nickel-copper-platinum group element project located in Western Australia’s Gascoyne region.
This joint venture is separate from Dreadnought’s flagship Mangaroon rare earth element ground in the same area. Under the agreement, First Quantum has the opportunity to earn a 51% stake in the nickel-copper-PGE project by investing $12 million in exploration and development by March 1, 2026.
As part of the earn-in, First Quantum will pay Dreadnought $150,000 by September 30, with the option to withdraw from the joint venture at any point. Recent drilling activities have confirmed the presence of a promising magmatic nickel-copper-PGE system within the Money Intrusion area of the project.
Dreadnought highlights similarities between the Money Intrusion and China’s Jinchuan nickel-copper-PGE deposit, which has significant nickel, copper, and PGE mineralization. Initial drilling results from the Money Intrusion have shown nickel-copper sulphide intersections in nine out of 12 holes, representing only a small portion of the extensive 45km-long target area.
Upcoming activities at the project include fixed loop electromagnetics surveys beginning in October to identify drill targets, with results expected in December. Managing Director of Dreadnought, Dean Tuck, expressed excitement about the collaboration with First Quantum and the prospects for the $12 million earn-in phase.
First Quantum has the potential to earn up to 70% ownership of the project, which covers 1,100sq km and is situated 250km southeast of Exmouth. With a market capitalization of approximately $20 billion, First Quantum is a major mining company with operations in copper, gold, and nickel across the globe.
