Arras Minerals Corp. (TSX-V: ARK) and Teck Resources Limited (TSX: TECK.A and TECK.B) (NYSE: TECK) signed a partnership to explore critical minerals in Pavlodar, Kazakhstan.
The deal, announced on Thursday, includes exploration of the Bozshakol-Chingiz Magmatic Arc but not the Beskauga copper-gold project, nor the regional exploration licenses Stepnoe, Ekidos, Aimandai and Elemes.
Until 2025, Teck will exclusively fund generative exploration work, committing an initial expenditure of $5 million by the end of 2025 across Package A and Package B, covering approximately 1,736 square kilometres.
Following the initial generative exploration phase, Teck has the option to choose up to four designated properties, each totalling 120 square kilometres.
The Bozshakol-Chingiz Magmatic Arc is a belt of volcanoes usually situated parallel to a convergent boundary where an oceanic plate is subducting beneath a continental plate. The arc is formed due to the subduction which leads to the formation of magma, and eventually, the magma rises to the surface creating volcanoes.
The arc contains the Bozshakol mine owned by KAZ Minerals and Arras’ Beskauga deposit. It is also the focus of Arras’ 3,300 square kilometre license package and is known to be productive with three known copper porphyries, two being highly profitable operations.
Copper porphyries are extensive, polymetallic systems renowned for their significant copper content in conjunction with other essential metals. They can yield economic concentrations of copper from as low as 0.15 per cent, accompanied by valuable by-products such as molybdenum, silver and gold.
These deposits contribute significantly to mineral production, accounting for 60 per cent of copper, 95 per cent of molybdenum and 20 per cent of gold worldwide.
Kazakhstan license package. Map via Arras Minerals.
For each selected property, Teck will fund exploration expenses of up to $47.5 million per project, aiming to secure up to a 75 per cent interest in each. Teck will reimburse Arras for certain project-related expenses incurred to date through a $1 million cash payment upon signing, with the potential for additional payments in the future if Teck decides to advance through future phases.
Arras will initially act as the manager for the first year of the two-year generative program, with Teck holding the option to assume the managerial role thereafter.
“As an early-mover into Kazakhstan two and a half years ago, following the substantial reforms to the business environment and mining law, Arras has assembled the third-largest land package in the country next to Rio Tinto and Fortescue and is specifically focused on copper in the highly prospective Bozshakol-Chingiz magmatic arc,” Arras CEO Tim Barry said in a statement.
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Arras recently completed its second summer field season across a 3,300 square kilometre license package. The program follows the success of its 2022 field program where more than 16,000 soil samples identified new targets.
Barry said the exploration work undertaken during the past two summer field seasons, often representing the first substantial modern exploration activities within these licenses since pre-1990, has outlined significant prospects for a substantial copper discovery. This discovery is thought to be akin to the successful operations of the Bozshakol and Nurkazgan mines situated within the same geological belt.
Arras President Darren Klinck highlighted that Teck’s strategic equity investment in Arras last November paved the way for significant investments in critical minerals-focused exploration across Arras’ project portfolio.
“This initiative in Kazakhstan highlights the emerging opportunities in the country and also demonstrates Kazakhstan’s strong position to be a key player globally as the world seeks to secure the necessary critical minerals required over the coming decades,” Klinck said.
Arras is a Canadian explorer of copper and gold in northeastern Kazakhstan. It has the third-largest license package in the country behind Rio Tinto Group (ASX: RIO) (NYSE: RIO) (LON: RIO) and Fortescue Metals Group (ASX: FMG).
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