Under terms of the agreements signed in Yantai, China, HPX - a metals-focused exploration and development company that also invests in disruptive exploration technologies - will deploy its proprietary Typhoon survey technology at Xintai's gold mine property for approximately three months, commencing in early 2019.
Typhoon is a high-power, induced polarisation and electromagnetic geophysical survey technology that can inject large amounts of energy much deeper underground than conventional technologies, penetrating through otherwise-opaque conductive or resistive cover to rapidly acquire survey data. Typhoon is deployed in conjunction with survey forward-modelling, QA/QC and data inversion software from HPX's 94%-owned subsidiary Computational Geosciences.
HPX will receive lease and technical service fee payments for the operation of Typhoon, completion of a survey report based on acquired data, as well as assistance with exploration planning and drillhole targeting. Should a gold resource discovery be made as a result of Xintai and HPX's efforts, HPX will receive royalty payments as a portion of net profits generated from the discovered resource, throughout the entire mine life.
Robert Friedland, chairman and CEO of High Power Exploration, said: "We are pleased to be partnered with Shandong Yantai Xintai Gold Mining and China National Gold to explore for gold using our unique and proven Typhoon technology.
"These agreements represent an opportunity for China's leading gold companies to leverage cutting-edge technology to maximise the chances of discovery, and for HPX to create value for our stakeholders with a royalty-based business model for Typhoon."
Eric Finlayson, president of HPX, added: "Typhoon has demonstrated its search capability in numerous countries around the world. Most recently, drill targets defined by Typhoon intersected semi-massive nickel and copper sulphides at Sama Resources' Yepleu project in Côte d'Ivoire, West Africa. We look forward to demonstrating our team's discovery track record and expertise in exploration survey planning, data acquisition and interpretation."