GBM Resources Limited (ASX: GBZ) has signed a farm-in agreement with Newcrest Operations Limited, a subsidiary of Newcrest Mining Limited, Mt Coolon Gold Mines Pty Ltd (MCGM) and Straits Gold Pty Ltd relating to the Mt Coolon Project tenements in the Drummond Basin in Queensland, Australia, held by MCGM.
The Mount Coolon Gold Project is in the northern Drummond Basin, approximately 250 km west of Mackay in Northern Queensland, Australia.
Newcrest has the right to acquire up to a 75% interest in the Mount Coolon Project tenements by spending up to A$25m and completing a series of exploration milestones in a three stage farm-in over six years.
Farm-in agreement expenditure and interest acquired overview:
I. Minimum Commitment Period: A$2 million spend within 24 months and reasonable endeavours
of completing at least 3,000 metres of drilling.
II. Stage 1 Phase: Subject to satisfying the Minimum Commitment Period Newcrest may acquire a 51% farm-in interest in the Tenements by spending an additional A$5 million and completing a further 7,000 metres of drilling within a period of 36 months of the commencement of the agreement.
III. Stage 2 Phase: Subject to satisfying Stage 1 Phase Newcrest may earn a further 24% farm-in interest in the Tenements by spending an additional A$18 million and completing at least another 10,000 metres of drilling within a period of a further 36 months.
“Over the last three years GBM has assembled a highly prospective tenement package in the Drummond Basin where large high grade epithermal gold deposits exist and we are pleased to have joined forces with Newcrest on advancing exploration in the basin and accessing its funding and geological experience in epithermal systems,” Managing Director and CEO, Peter Rohner, said.
“In the short term GBM will continue its exploration focus on the highly prospective Twin Hills tenement package and advance resource re-estimation work following the recent initial drilling programme,”
Newcrest General Manager Exploration, Fraser MacCorquodale, said the Drummond Basin has a historic pedigree of hosting high grade epithermal mines.
“We are looking forward to using both team’s expertise to accelerate the exploration programme at Mt Coolon to support the potential for discovery.”
The key terms of the Agreement are:
Newcrest will have the right but not the obligation to acquire up to a 75% farm-in interest in the Tenements.
Newcrest will act as Manager during the various stages in respect of the Joint Venture, with a Technical Committee formed with MCGM and Newcrest representatives to discuss technical, operational and financial matters in connection with exploration activities on the Tenements during the farm-in period. A Management Committee comprised of representatives of the Joint Venture participants shall be formed upon the commencement of the Joint Venture and shall replace the Technical Committee.
For further information please visit: https://www.gbmr.com.au/
