Metal Bank Limited has entered a non-binding MOU with Austral Resources to explore toll treatment of ore from the Millennium Project at Austral’s nearby Rocklands facility, aiming to advance a promising copper-cobalt-gold resource in NW Queensland.
- Non-binding MOU signed between Metal Bank and Austral Resources
- Assessment of toll treatment at Rocklands processing facility, 19km from Millennium
- Millennium Project holds 8.4Mt JORC Inferred Resource with copper, cobalt, and gold
- Feasibility studies underway with potential for regional ore consolidation
- MOU supports MBK’s strategy to progress Millennium towards production readiness
Strategic Alliance for Processing
Metal Bank Limited (ASX, MBK) has taken a significant step in advancing its Millennium Project by signing a non-binding Memorandum of Understanding (MOU) with Austral Resources Australia Ltd. The agreement focuses on evaluating the potential for toll treatment of ore from Millennium at Austral’s Rocklands processing facility, located approximately 19 kilometres away. This collaboration aims to leverage Rocklands as a regional processing hub, aligning with Austral’s strategy to consolidate multiple ore sources in Northwest Queensland.
Unlocking the Millennium Resource
The Millennium Project boasts a JORC 2012 Inferred Mineral Resource Estimate of 8.4 million tonnes grading 0.09% cobalt, 0.29% copper, and 0.12 grams per tonne gold, equating to a 1.23% copper equivalent. Situated on five granted mining leases, the project also has significant expansion potential, with a recent application for an additional mining lease that includes previously inaccessible mineralised zones. Metal Bank is moving towards increasing its ownership stake to 80%, underscoring its commitment to developing this near-term copper-cobalt asset.
Evaluating Technical and Commercial Viability
The MOU sets out a collaborative framework for both companies to assess key factors including metallurgical testwork, processing compatibility, haulage logistics, commercial tolling structures, and alignment of project timelines. While non-binding and subject to further due diligence and definitive agreements, this arrangement allows both parties to progress feasibility studies in parallel with their respective development plans. Austral anticipates restarting operations at Rocklands within two years, which could provide a timely processing solution for Millennium ore.
Regional Significance and Growth Potential
Executives from both companies emphasise the strategic importance of this partnership. Metal Bank’s CEO, Tim Gilbert, highlighted the upside value of Millennium and the opportunity to advance the project with Austral’s processing infrastructure. Austral’s Chairman, David Newling, noted that Rocklands’ position and capabilities could unlock value beyond Austral’s own deposits, benefiting shareholders and the broader Cloncurry mining region. This alliance reflects a broader trend towards regional consolidation of processing facilities to improve operational efficiencies and reduce capital expenditure.
Looking Ahead
Metal Bank continues to pursue a multi-asset growth strategy, with interests in gold and cobalt projects across Australia and the Middle East. The Millennium Project remains a cornerstone of this portfolio, with ongoing exploration and development activities supported by government grants and strategic partnerships. The outcome of the toll treatment feasibility work at Rocklands will be a key milestone in determining the project’s pathway to production.
Bottom Line?
This MOU marks a pivotal step for Metal Bank, but the path to production hinges on successful feasibility outcomes and binding agreements.
Questions in the middle?
- What are the expected timelines and costs for completing metallurgical testwork and feasibility studies?
- How will toll treatment pricing and commercial terms be structured to ensure project viability?
- What impact will the additional mining lease application have on resource size and project economics?