Gold Road Resources has granted Great Boulder Resources an option to acquire 100 per cent of the Mt Carlon project in Western Australia.
The arrangement requires Great Boulder to meet all statutory expenditure commitments for the 2019 financial year. The option is exercisable until August 10 next year.
Upon exercising the option, Gold Road will receive a 2 per cent net smelter royalty on any minerals extracted from Mt Carlon.
Gold Road will also have the right to acquire any gold discovery for three times the attributable expenditure, subject to a minimum JORC compliant resource 50,000 ounces (oz).
The Mt Carlon project shows a strong magnetic and gravity response over several kilometres, which indicates prospective nickel-copper-cobalt sulphide mineralisation.
Great Boulder said further mineralised intrusions might occur. Upcoming exploration programs will assess elevated levels of nickel and copper that were identified in previous aircore drilling.
Mt Carlon is 60km south of Great Boulder’s Mt Venn copper-nickel-cobalt project and immediately west of the Yamarna shear zone, in a similar geological setting to Mt Venn. It lies adjacent to the Eastern Mafic copper-nickel-cobalt discovery.
Great Boulder has also announced that it now holds a 75 per cent interest in Mt Venn under its Yamarna joint venture (JV) with Eastern Goldfields; the new mineral exploration company has met the required minimum expenditure set out in the JV.
An exploration success at Mt Venn also led Eastern Goldfields to maintain its interest by maintaining a 25 per cent contribution of all project expenditure.
Reviewing these prospects, Great Boulder has chosen to withdraw from its non-core Broadwood and Balagundi gold JVs to stop incurring further costs.
The Balagundi project is 20km east of the Kalgoorlie Super Pit, and the Broadwood project between the Super Pit and Binduli gold mining centre. The projects required Great Boulder to commit to an exploration expenditure of $1 million and $500,000 respectively over a five-year period.