Under the Balagundi Joint Venture Agreement, the Company has the right to earn a 75% interest in the Balagundi Project by funding exploration expenditure of $1,000,000 over a 5 year period.
Several historic gold mines are located on and around the project area, including the high-grade Mount Bellew underground gold mine.
This project has been privately held since 1986 and has significant strike extensive historical gold workings highlighting the potential for a large gold system to be discovered. The Balagundi Project has only been partially drill tested, with significant potential remaining for the discovery of gold resources.
Significant historic drilling intersections include:
- 24m grading 19.1g/t gold from surface;
- 4m grading 40.4 g/t gold from 99m downhole; and
- 12m grading 15.2g/t gold from 36m downhole.
Historical gold workings expose several gold-bearing quartz vein systems extending through the Balagundi Project area over strike lengths of several hundred metres. Four arsenic-gold trends evident in soil geochemistry highlight the main mineralised trends in the project area. The project comprises a large-scale structural duplex which has been intruded by gabbroic sills, known to be significant hosts for gold mineralisation in the Eastern Goldfields.
During late 2016-early 2017, Great Boulder Resources completed two phases of RC drilling at the Mt Bellew North and Mt Bellew East prospects to test mineralisation extensions. These drill programs have highlighted the potential of the Balagundi project with both prospects remaining open.
At Mt Bellew North, gold mineralisation is largely confined to a sequence of northwest trending mafic-sedimentary lithological contacts (+/- quartz veining). The presence of northeast cross-cutting structures also appears to be an important mineralisation control, particularly as the Mt Bellew North and East trends appear to be offset by a significant northeast structure. Mineralisation remains open at the intersection of these structures and the intention is to extend drilling along both of these trends.
In addition to the RC programs, Great Boulder Resources have undertaken a review of previous drilling and geochemistry programmes, and have also reprocessed close spaced (20m) magnetic data to assist our interpretation and understanding of the gold mineralisation controls at Balagundi.
As a result, we have generated three new priority targets. Targets 1 and 3 have returned anomalous gold results in drilling by previous explorers (Acacia and EGMC) targeting gold-arsenic soil anomalies. Target 2 is an untested area south of the Mt Bellew trend, along the same mafic-sediment contact with a coincident soil anomaly and significant north-east intersecting structure.