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Ausgold signs binding option agreement for Yamarna project

Published by , Assistant Editor
Global Mining Review,

Ausgold Limited (Ausgold) has entered into an option agreement with fellow ASX-listed mineral exploration company Great Boulder Resources Ltd (Great Boulder) in regards to its wholly-owned Yamarna Project, located 125 km northeast of Laverton in Western Australia. The Yamarna project, which is 40 km north along strike of Great Boulder’s Mt Venn project, comprises exploration licences E38/2129 and ELA 38/3311 covering approximately 300 km2 of the northern Mt Venn Greenstone Belt.

With drilling on the Winchester prospect having intersected disseminated sulphides chalcopyrite (copper), pentlandite (nickel) and pyrite (iron). Since this drilling Ausgold has identified further nickel-copper-cobalt, platinum group elements (PGE) and gold targets. Under the terms of the agreement, Ausgold has granted Great Boulder an option to form a joint venture on granted tenement E38/2129 and application E38/3311 through the expenditure of AUS$50 000 on E38/2129 during the current reporting year. With Great Boulder to drill two EM targets immediately at the Winchester Prospect. Upon exercise of the option Great Boulder will have the right to earn a 75% interest in the Yamarna project by issuing Ausgold 1 500 000 fully paid ordinary shares and spending a minimum AUS$500 000 on exploration on the tenements over a term of four years. Upon Great Boulder meeting the minimum expenditure milestone, Ausgold will retain a 25% free-carried interest in the project up until a decision to mine.

Ausgold’s Managing Director, Matthew Greentree, said: “The farm-in agreement with Great Boulder over the Yamarna Project ensures the asset will be advanced by a committed explorer in the region through a well-funded exploration programme. As with the recent farm-in deal we completed on the Doolgunna Station Project, Ausgold will retain a significant stake in the project and be freecarried through to a decision to mine. This structure allows the company to focus exploration funds on its 100%- owned Katanning Gold Project, where the company continues to experience exploration success and is progressing towards mine development. We are pleased that Great Boulder will commence exploration immediately by drilling two EM targets within the Winchester prospect.”

Great Boulder Managing Director Stefan Murphy, said: “We have established extensive mineralisation across Mt Venn and the Eastern Mafic and while our exploration programme is ongoing and still in its early phase, it is clear that this is a large mineralised province. The results at the Yamarna nickel project show that this area is also mineralised and has the potential to host higher-grade nickel which could blend with that at Mt Venn and the Eastern Mafic.”

Ausgold has identified 19 targets at the Yamarna Project using both airborne and fixed loop ground electromagnetic (EM) surveying methods. Plates derived from the EM surveys were tested using Reverse Circulation (RC) drilling, with the initial drilling at the Winchester prospect intercepting significant copper and nickel mineralisation.

In particular, drill hole YMRC003 returned 31 m @ 0.58% copper, and 0.35% nickel from 29 m. During 2011 a further eight RC holes were completed across the Winchester Prospect and two other EM targets, Yam09 and Yam10. Significant results from this drilling included:

  • 21 m @ 0.63% Cu, 0.20% Ni, and 0.02% Co from 88 m (YMRC009), including 3 m @ 0.9% Cu, 0.5% Ni, 0.03% Co from 99 m and;
  • 3m @ 1.2% Cu, 0.2% Ni, and 0.01% Co from 105 m.

28 m @ 0.50% Cu, 0.21% Ni, and 0.02% Co from 99 m (YMRC010), including 10 m @ 0.8% Cu, 0.4% Ni, and 0.03% Co from 99 m An aircore (AC) drilling programme of 77 holes for 2282 m was completed across the broader Winchester prospect, which identified a further 500 m of strike extensions to the prospective pyroxenite unit and copper-nickel mineralisation. This mineralisation is characterised by disseminated sulfides (up to 10%) comprising chalcopyrite (copper-iron sulfide), pentlandite (iron-nickel sulfide) and pyrite (iron sulfide) contained within mafic-ultramafic rocks. AC drilling intersected elevated copper-nickel grades in weathered bedrock 55 m south of previous RC intercepts suggesting potential for a larger mineralised system, with best results including:

  • 48 m @ 0.6% Cu and 0.3% Ni, including 9 m @ 1.09% Cu and 0.4% Ni.
  • 39 m @ 0.4% Cu and 0.2% Ni.

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