Great Boulder Resources Limited (ASX: GBR) intends to join hands with Ausgold for its Yamarna Nickel Project

  • Oct 11, 2018 AEDT
  • Team Kalkine
Great Boulder Resources Limited (ASX: GBR) intends to join hands with Ausgold for its Yamarna Nickel Project

ASX listed mineral exploration company Great Boulder Resources Limited has announced a possible joint venture with fellow resource group Ausgold Limited (ASX: AUC) for its 100% owned Yamarna nickel project in Western Australia.

In an announcement dated 5 October 2018, Great Boulder Resources told it has entered into a binding agreement with Ausgold Limited which grants Great Boulder an option to form a joint venture on the Ausgold’s Yamarna nickel project.

Further, it has been informed that if Great Boulder exercises this option it will issue 1.5 million of its shares to Ausgold’s shareholders. This gives Great Boulder’s the right to clutch maximum of 75% of Yamarna earnings through the minimum expenditure of $500,000 over 4 years. Which means in an initial 2 years GBR will have the right to earn 51% through the expenditure of $250,000, whereas by increasing the expenditure by $250,000 over an addition 2 years, it can earn 21% more of Ausgold’s Yamarna project which takes total GBR’s earnings from Yamarna to 75%.   

Great Boulder’s intention to join hand with Ausgold is driven by an attractive blend of Yamarna’s higher-grade nickel sulphide mineralization with its neighboring Mt Venn and Eastern Mafic deposit. It is because Ausgold’ highly prospective Yamarna nickel-copper project is located just 40 km north to Great Boulder’s Mt. Venn copper-nickel-cobalt project and 125 km northeast of Laverton in Western Australia.

As per the terms of agreement, the option for formation of joint venture on granted tenements of Ausgold can be exercised by Great Boulder only on the payment of $50,000 to Ausgold during the current reporting period.

Drilling at Winchester prospect, one of the primary targets within Yamarna nickel project, has returned nickel-copper-cobalt mineralization which includes 31m @ 0.58% copper, 0.35% nickel from 29m in YMRC003, 21m @ 0.63% copper, 0.20% nickel, and 0.02% cobalt from 88m in YMRC009 and 28m @ 0.50% copper, 0.21% nickel, and 0.02% cobalt from 99m in YMRC010.

GBR Managing Director Stefan Murphy said that the Ausgold’s Yamarna nickel project and recently announced Gold Road’s Mt Carlton project have the potential to play a significant role in the Great Boulder’s strategy to establish a substantial copper-nickel-cobalt operation in Western Australia.

However, it has been provided that should Great Boulder meet the minimum expenditure milestone of $500,000 over 4 years, Ausgold Limited will retain a 25% free-carried interest in a decision to mine at Yamarna.

As per the company’s information, the Annual General Meeting of Great Boulder Resources Limited is due to be held on 5 November 2018 which includes the agenda to pass special resolution for the approval of additional placement facility.

The stock of Great Boulder Resources Limited has fallen by 2.22% to $0.220 on 11 October 2018 (2:27 PM AEST). GBR’s stock has seen a decent performance change of 15.38% over the past on year but it has been dipping down since last three months. This translates the plunge of 47.67% in GBR stock over the last 3-month period.

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