Strategic Energy Resources (ASX:SER) has signed a joint venture agreement with Sumitomo Metal Mining Oceania to advance the Bulimba Gold Project, located roughly 50km northwest of Chillagoe in northeast Queensland.
Under the deal, SMMO can earn up to an 80% stake by spending $6 million and completing 7,500m of drilling over five years, with the potential to increase its interest to 90% upon completion of a definitive feasibility study on a >1 Moz Au-equivalent resource.
SMMO is required to commit a minimum of $600,000 in the first 12 months, while SER will manage and operate the exploration program, receiving a 10% operator fee on all exploration expenditure.
The Bulimba Project covers four exploration licences and targets extensions of the Palmerville–Gamboola Fault Zone, a prolific gold–copper province hosting significant deposits such as Mungana and Red Dome, which collectively contain 2.7 million ounces of gold, 273 kt of copper, and 34 million ounces of silver.
SER Managing Director Dr. David DeTata described the partnership as a "long-term collaboration that will systematically explore and fund the project through to DFS stage," while SMMO Managing Director Jiro Uesugi expressed enthusiasm for advancing the project alongside SER's team.
The binding joint venture agreement is expected to be finalised within the next two months, with exploration programs set to begin in the upcoming field season.
At the time of reporting, Strategic Energy Resources' share price was $0.0080.