Great Boulder secures option to double Meekatharra landholding

Great Boulder Resources (ASX:GBR) has signed a heads of agreement for an option to acquire 75% of Castle Minerals’ (ASX:CDT) Polelle and Wanganui Gold Projects at Meekatharra, Western Australia. 

Great Boulder, which has a $28.43 million market capitalisation, says together, the two projects will double its footprint in Meekatharra to 348km-square. 

The Polelle and Wanganui projects sit south and southwest of Great Boulder’s flagship Side Well Gold Project, respectively, in a similar geological and structural setting. 

The company reports initial exploration over both Polelle and Wanganui is likely to involve field mapping and ground-truthing of priority targets, as well as the collection of any available historical drill chips to expand the multi-element dataset.

Under the terms of the acquisition, Great Boulder has a 12-month option to explore both projects for a consideration of $50,000 in Great Boulder scrip valued at a 30-day VWAP prior to the execution date of the agreement, with a commitment to spend a minimum of $250,000 on exploration. 

Great Boulder may exercise the option to acquire a 75% interest in the projects by paying Castle an additional $100,000 in Great Boulder scrip, as well as a commitment to spend $400,000 during the second option period.

If the option is exercised, Great Boulder and Castle will form a 75:25 contributing joint venture (JV). However, if Castle elects not to contribute, its JV interest will dilute annually on a pro-rata basis. 

Both Polelle and Wanganui have been subjected to historical mining, and previous work by Castle Minerals has established untested targets for immediate exploration. 

These targets include ‘high-grade’ intersections at Wanganui, including hole CWRC012 with 3m @ 18.66 grams per tonne (g/t) gold (Au) from 62m. 

Great Boulder says the potential acquisition comes as aircore (AC) drilling at the Saltbush prospect south of the Ironbark corridor is expected to begin shortly. 

Great Boulder Resources Managing Director (MD) Andrew Paterson says the deal aligns with the company’s strategy of acquiring ‘quality projects in the right geology’. 

“As one of the first companies in the area to negotiate a new cultural heritage and land access agreement with the Yugunga Nya People, we can confidently expand our project area knowing we have the skills and relationships to explore efficiently and effectively.”

“As one of the first companies in the area to negotiate a new cultural heritage and land access agreement with the Yugunga Nya People, we can confidently expand our project area knowing we have the skills and relationships to explore efficiently and effectively”

Castle Minerals MD Stephen Stone says aligning the Polelle and Wanganui projects with Side Well represents the most logical way forward while it is focused on fast-tracking its Kambale Graphite Project. 

“We have closely followed the impressive developments at Side Well and believe that combining these extensive and prospective projects substantially increases the opportunity to establish a critical mass of resources in this very underexplored eastern region of the prolific Meekatharra gold camp.”   

Great Boulder Resources is a mineral explorer with a portfolio of ‘highly prospective’ gold and base metals assets in Western Australia ranging from greenfields to advanced exploration. 

Castle Minerals holds a suite of projects considered prospective for battery metals, base metals, and gold. 

As of 30 September 2023, Great Boulder had $2.488 million cash and cash equivalents at hand, although it tapped investors for $4.5 million to accelerate resource expansion at Side Well earlier this month.

Write to Adam Drought at Mining.com.au

Images: Great Boulder Resources
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.