Ausgold And Great Boulder Resources Enter Into A Joint Venture

Ausgold Limited (ASX: AUC) announced on 13th March that Great Boulder Resources Limited (ASX: GBR) moved forward with its intention to join hands with Ausgold, and both the companies entered into a farm-in and Joint Venture Agreement.

The company finalised a farm-in and Joint Venture Agreement with Great Boulder, related to its 100% owned Yamarna Project which is located 40Km north of Great Boulder’s Mt Venn and Eastern Mafic prospect. The Project comprises of exploration licence E38/2129 and ELA 34/3311 and covers an approximately 300Km square of the northern Mt Venn Greenstone Belt.

Ausgold fully-owned Yamarna project hosts a high prospective Winchester nickel-copper project, which is located 125Km northeast of Laverton in Western Australia. Great Boulder’s drilled two reverse circulation (RC) holes 18WNRC001 and 18WNRC002 at the Winchester project site in October 2018; the drill intersected disseminated sulphides chalcopyrite (copper), pentlandite (nickel) and pyrite (iron), which confirms the high potential of the project to host significant nickel-tenor sulphide mineralisation.

The RC drilling significant result include:

The drill hole which was identified as 18WNRC001 resulted in 7m at 1.1% Cu, 0.2% Ni, 0.01% Co from 123m.

The drill whole which was identified as 18WNRC002 resulted in 13m at 0.9% Cu, 0.3% Ni, 0.02% Co from 138m including 5m at 1.1% Cu, 0.7% Ni, 0.04% Co, 0.10g/t PGE.

The Agreement:

Great Boulder, which previously had entered into a binding agreement with the company, which provided Great Boulder an option to form a joint venture with the company, has exercised their option to form a Farm-in and join venture with the company. The exercised option allowed Great Boulder to enter the tenements E38/2019 and E38/3311 of the company.

Under the terms of the agreement, the company will receive a 1,500,000 GBR shares, which will be issued by the Great Boulder under staged voluntary escrow periods of 3 to 9 months.

Great Boulder can earn a 51% interest in the prospectus by obliging to the criteria of spending on the exploration expenditure. It can earn its 51% interest by spending $250,000 on the exploration expenditure of the Winchester project for over two years.

Great Boulder can further acquire a 24% additional interest in the project if the company decides to spend another $250,000 on the exploration expenditure of the project for over four years. That makes Great Boulder capable of acquiring 75% interest in the project, and the company has currently spent about $100,000 at Winchester.

If the company meets the obligation of mining spending, Ausgold will retain a 25% free-carried interest in the project to a decision to mine.

The potential entry in the Winchester project seems promising for Great Boulder, and as per the Managing Director Stefan Murphy, the project could play a pivotal role in materialising the company’s aim to establish a substantial copper-nickel-cobalt operation. The promising result from the drill holes 18WNRC001 and 18WNRC002 further boosts the management’s confidence to move forward with the company’s aim.

During the time of writing this report, the share of the company is trading at A$0.021, flat as compared to its previous close.


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