Immediately adjacent south and west of the Company’s Teal gold mine is the Binduli North gold project which is subject to an Earn-In Joint Venture Agreement with Evolution Mining Limited (ASX; EVN). Evolution are the managers of the project and are sole funding to earn 70% over 5 years.
The Binduli Gold Project comprises ~98.8 km2 tenement package located (5–20kms) west of Kalgoorlie and is adjacent to the Frogs Leg underground and White Foil open pit gold mines operated by Evolution.
Project geology at Binduli comprises Achaean felsic to intermediate volcanic and volcanoclastic rocks, porphyry intrusions and sediments within the hinge of the Goongarrie – Mt Pleasant Anticline. The area is bound to the west by the economically important Zuleika Shear Zone and to the west by the Abattoir Fault. The Zuleika Shear Zone and major faults and splays related to it are host to numerous significant gold deposits, a number of which are currently in production or development.
There are a number of priority targets within the project where historic drilling has intersected significant gold mineralisation including;
Bee Eater Prospect – 4m @ 21.1g/t and 1m @ 7.5g/t Au;
Honey Eater – 5m @ 5.74g/t, 2m @ 4.71g/t and 3m @ 3.25g/t Au;
Coot & Crake – 14m @ 2.55g/t, 9m @ 1.88g/t and 20m @ 6.67g/t Au; and
Darter – 10m @ 4.44g/t and 2m @ 1.84g/t Au.
Evolution have conducted one small reconnaissance aircore drilling program since inception of the JV and no significant results were returned.
In November 2017, EVN plans to conduct a major RC program to test multiple priority targets at the Bee Eater, Horans, Coot and Crake prospects.
Farmin and Joint Venture Agreement Terms
- Evolution can earn an initial 51% interest in the Binduli Gold Project by completing expenditure of $2.1M within 3 years;
- Evolution can elect to earn a further 19% interest in the Binduli Gold Project by completing additional expenditure of $2.5M over a further 2 years (in total $4.6M over 5 years to earn 70%);
- Evolution will be appointed as the manager of the project;
- Evolution must incur minimum expenditure of $200,000 before any withdrawal;
- All tenements must be maintained in good standing;
- If Evolution withdraws prior to the initial $2.1M expenditure it earns no interest;
- If after earning the initial 51% interest, Evolution elects not to earn a further 19%, the JV parties must contribute on a pro rata basis or dilute according to the standard industry formula;
- Once Evolution has earned a further 19% (if it elects to do so), the JV parties must contribute on a pro rata basis or dilute according to the standard industry formula.