Greenvale and Sunrise Energy Metals Ignite $5M Geothermal Venture in Queensland
Greenvale Energy has partnered with Sunrise Energy Metals’ subsidiary SRL Hot Rocks to advance the Millungera Basin geothermal project through a $5 million Farm-in agreement, unlocking significant clean energy potential in north-west Queensland.
- Farm-in agreement with SRL Hot Rocks to fund $5M exploration in two phases
- Potential 80/20 joint venture to develop Millungera Basin geothermal assets
- Newly granted geothermal exploration permits valid for five years
- Access agreements secured with local Indigenous groups
- Greenvale refocuses on uranium projects while leveraging geothermal value
Strategic Partnership to Unlock Geothermal Potential
Greenvale Energy Limited (ASX, GRV) has taken a decisive step to advance its geothermal ambitions by entering a Farm-in Agreement with SRL Hot Rocks Pty Ltd, a subsidiary of Sunrise Energy Metals (ASX, SRL). This partnership sets a clear pathway for the development of the Millungera Basin Geothermal Project, located in the resource-rich north-west of Queensland.
The agreement tasks SRL Hot Rocks with sole funding exploration and development activities up to $5 million, split across two phases over a maximum five-year period. Upon completion, the parties may form a joint venture with SRL-HR holding an 80% stake, positioning Greenvale to benefit from the project’s upside while mitigating upfront capital risk.
Millungera Basin, A Geothermal Frontier
Situated approximately 120 kilometres east of Mount Isa, the Millungera Basin is considered one of Australia’s most promising geothermal regions. Geological data suggests the presence of high heat-producing granitic intrusions beneath the basin, which could provide a substantial and sustainable heat source for energy generation.
With a thermal energy potential estimated to exceed 611,000 petajoules, the project’s scale dwarfs Australia’s annual natural gas and coal energy production, underscoring its potential to contribute meaningfully to the nation’s clean energy transition.
Regulatory and Community Foundations in Place
Greenvale has secured three geothermal exploration permits covering Julia Creek, Lara Downs, and Ouchy, each granted for an initial five-year term. These permits, coupled with access agreements with the Mitakoodi and Mayi People Native Title Aboriginal Corporation, provide a solid foundation for exploration activities to commence promptly under the Farm-in arrangement.
These steps reflect a thoughtful approach to balancing exploration progress with respect for Indigenous land rights and regulatory compliance, critical factors in the project's long-term viability.
Balancing Portfolios and Unlocking Value
Greenvale’s CEO, Alex Cheeseman, highlighted the strategic nature of the Farm-in deal, emphasizing that it allows Greenvale to focus its exploration resources on its uranium portfolio while unlocking latent value in its geothermal assets. This dual focus could position the company well in the evolving energy landscape, where both clean energy and critical minerals are in demand.
Meanwhile, Sunrise Energy Metals brings expertise and capital to the table, accelerating the Millungera project’s exploration and development phases without diluting Greenvale’s broader strategic focus.
Bottom Line?
As SRL Hot Rocks begins funding exploration, the Millungera Basin project could soon shift from potential to pivotal in Australia’s clean energy future.
Questions in the middle?
- Will SRL Hot Rocks complete both Farm-in phases to secure majority ownership?
- How will the joint venture manage operational risks and capital allocation?
- What are the timelines and milestones for commercial geothermal energy production?
