Ausgold has executed a joint venture (JV) agreement with Great Boulder Resources over its Yamarna project in Western Australia.
Yamarna includes the highly prospective Winchester nickel-copper project, which shows potential for significant high nickel-tenor sulphide mineralisation.
The Winchester project could play an important role in Great Boulder’s strategy to establish a substantial copper-nickel-cobalt operation, according to Great Boulder managing director Stefan Murphy.
It represents part of a large igneous province with magmatic sulphide mineralisation now identified over a vast area.
“Only a very small area has been tested at Winchester and the presence of high-grade copper and nickel mineralisation, confirmed through petrography, is extremely promising,” Murphy said.
“Combining Winchester with our Mt Venn and Eastern Mafic deposits at Yamarna is an important step in building a consolidated copper-nickel-cobalt business for the region.”
Great Boulder will issue 1.5 million shares to Ausgold in return for an opportunity to earn a 51 per cent interest in the Winchester project after spending $250,000 on exploration over two years. It can then gain an additional 24 per cent interest in Winchester by spending another $250,000 over four years.
The company has already spent around $100,000 at Winchester.
“The joint venture is structured so Ausgold retains a 25 per cent free-carried interest through to a decision to mine, allowing Ausgold to focus its funds on its 100 per cent-owned Katanning gold project, where the company continues to have exploration success and is progressing towards a mine development of the 1.04 million ounces gold resource,” Ausgold managing director Matthew Greentree said.
Exploration activities are underway at Winchester, with an aircore geochemistry drilling program commencing this week, followed by a ground gravity survey.