The option covers the Mt Carlon project, which is owned by Gold Road Resources (ASX:GOR) and is 60 kilometres south of Mt Venn, part of the broader Yamarna project.
Mt Carlon exhibits a strong magnetic and gravity response over several kilometres and is considered highly attractive.
This may represent a large mafic intrusion, prospective for nickel-copper-cobalt sulphide mineralisation.
A large ultramafic unit, which has been mapped over 7 kilometres of strike adjacent to the mafic intrusion target, is also considered prospective for nickel sulphide.
The Mt Venn and Mt Carlon projects over a regional magnetic image.
Gold Road has granted Great Boulder an option to acquire 100% of the project at any time up until August 10, 2019.
In granting the option, Great Boulder has agreed to meet all statutory expenditure commitments for the 2019 financial year.
Should Great Boulder elect to exercise its option, Gold Road will receive a 2% net smelter royalty on any minerals extracted.
The agreement also provides for Gold Road to be granted the right to acquire any gold discovery defined for three times the attributable expenditure, subject to a minimum JORC-compliant resource of 50,000 ounces.
The potential of Mt Carlon is enhanced by its geological setting.
It is immediately west of the Yamarna shear zone in a similar geological setting to Mt Venn and Great Boulder’s adjacent Eastern Mafic copper-nickel-cobalt discovery.
Geology map of Mt Carlon showing mafic intrusion and ultramafic nickel targets.
The discovery of primary copper-nickel-cobalt mineralisation at Mt Venn and Eastern Mafic indicates that a magmatic sulphide system was active along the margins of this shear zone and that further intrusions may occur.
Elevated levels of nickel and copper have been identified in historical aircore drilling and these will be assessed in upcoming exploration programs.
Only shallow drilling and soil sampling has been completed at Mt Carlon to date with the bedrock largely untested and no ground or airborne electromagnetic (EM) surveys undertaken.
Great Boulder intends to extend the aircore geochemistry coverage over the interpreted mafic intrusion in coming months and complete an EM survey over prospective targets.
Mt Venn interest increased
The company has also achieved its minimum expenditure condition under the Yamarna Joint Venture Agreement and now holds a 75% legal and beneficial interest in the Mt Venn project.
Owing to the exploration success at Mt Venn, joint venture partner Eastern Goldfields Mining Company Pty Ltd (EGMC) has elected to maintain its interest by contributing 25% of all project expenditure.
In light of the expanded land holding and exploration and development strategy in the Yamarna region, Great Boulder has re-evaluated its wider asset portfolio.
This has resulted in the company deciding that the Broadwood and Balagundi gold joint ventures are non-core.
As such the company is withdrawing from the joint ventures rather than incur further exploration and holding costs.