The  project includes the highly prospective Winchester nickel-copper project, located 125 km northeast of Laverton in Western Australia.

The Yamarna Project, which is 40km north along strike of Great Boulder’s Mt Venn Project, comprises exploration licences E38/2129 and ELA 38/3311 covering approximately 300km2of the northern Mt Venn Greenstone Belt. Two RC drill holes completed in October 2018 by Great Boulder at the Winchester Prospect intersected disseminated sulphides chalcopyrite(copper),pentlandite(nickel)and pyrite(iron),confirming thepotential for a significant high nickel-tenor sulphide mineralization. Significant results include:

7m at 1.1% Cu, 0.2% Ni, 0.01% Co from 123m (18WNRC001)

  • 13m at 0.9% Cu, 0.3% Ni, 0.02% Co from 138m (18WNRC002) including 5m at 1.1% Cu, 0.7% Ni, 0.04% Co, 0.10g/t PGE

The Agreement

Great  Boulder has  exercised  their option  to  form  a Farm-in/Joint Venture  on  granted  tenement  E38/2129  and application E38/3311.Under the terms of the agreement, Great Boulder will issue Ausgold 1,500,000 GBR shares which are under staged voluntary escrow periods of 3 to 9 months.  Great Boulder can earn a 51% interest in the Winchester project by spending $250,000 on exploration over two years, and an additional24% (75% in total) by spending  an  additional  $250,000  ($500,000  in  total)  over  four  years.  Great Boulder has  currently  spent approximately $100,000 at Winchester.

Upon Great Boulder meeting the minimum expenditure milestone, Ausgold will retain a 25% free-carried interest in the Winchester project to a decision to mine.

Ausgold’s Managing Director, Matthew Greentree, commented : “We  are  pleased  to  formalise  the  Joint  Venture agreement  with  Great  Boulder ensuring the highly  prospective Yamarna  Project  is  advanced by  a focused nickel –copper exploration  program  over  the  next  two  years.  Great Boulder has shown a commitment to exploration in the region and has committed to spend $500K to earn 75% of the Yamarna project.”

“The  Joint  Venture  is  structured so Ausgold  retains a25% free-carried interest through  to  a  decision  to  mine, allowing Ausgold to focus  its funds  on its  100%-owned Katanning Gold Project, where the Company continues  to have exploration success and is progressing towards amine development of the 1.04 Moz gold Resource.”

Great Boulder Managing Director Stefan Murphy, commented:“TheWinchester project could play an important role in the Company’s strategy to establish a substantial copper-nickel-cobalt operation.”

“The Winchester  project  represents  part  of  a  large  igneous  province with magmatic  sulphide  mineralisation  now identified over a vast area”Mr Murphy said.

“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.

“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.”

Source: Company Press Release