Great Boulder Resources has agreed to acquire 100% of the prospective Mt Carlon nickel-copper project located in Western Australia (WA) from Gold Road Resources.
Located 60km south of Great Boulder’s Mt Venn copper-nickel-cobalt project, Mt Carlon exhibits a strong magnetic and gravity response over several kilometres, pointing to prospective for nickel-copper-cobalt sulphide mineralisation.
Great Boulder noted that the project (Exploration Licence E38/2902) is located west of the Yamarna shear zone and adjacent to the Eastern Mafic copper-nickel-cobalt discovery.
In its future exploration programmes, the company will assess elevated levels of nickel and copper identified during historical aircore drilling.
Great Boulder expects to find additional mineralised intrusions in the area following the discovery of primary copper-nickel-cobalt mineralisation at Mt Venn and the Eastern Mafic.
So far, Mt Carlon has been subjected to only shallow drilling and soil sampling. The company plans to complete an EM survey over prospective targets in the coming months.
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The company will have until 10 August next year to exercise the option.
Under the terms of the option deal, Great Boulder is required to meet all statutory expenditure commitments for the 2019 financial year. Once the option is exercised, Gold Road is entitled to receive a 2% net smelter royalty (NSR) on production from the licence.
The transaction also offers Gold Road the right to acquire any gold discovery for thrice the attributable expenditure. However, this right is subject to a minimum JORC compliant resource of 50,000oz.
Simultaneously, Great Boulder revealed that it now owns a 75% interest in the Mt Venn project after satisfying a minimum expenditure condition under the Yamarna joint venture agreement.