Gold and base metals explorer Godolphin Resources have added another string to its bow after entering into a two-tranche farm-in and joint venture agreement with private exploration outfit EX9 to earn up to a 75 per cent stake in the Narraburra Rare Earth Element, or “REE” Project located some 15 kilometres north of Temora in central west NSW.
The deal follows a comprehensive review of Godolphin’s current project portfolio and an analysis of the Lachlan Fold Belt’s potential to house economic REE ventures.
The first tranche requires Godolphin to invest $1 million in the project over the course of two years to gain a 51 per cent interest. Godolphin will also issue EX9 with $1 million in new fully paid ordinary shares, calculated at the 30-day volume weighted average share price, or “VWAP” before the date of issuance, subject to the Corporations Act and ASX listing rules.
Godolphin has pledged to pay a further $2 million in exploration and development expenditure within four years to achieve a total of 75 per cent ownership in the project under the second tranche.
Following the expenditure of the second tranche by Godolphin, EX9 would receive an additional $1 million in new shares calculated at the 30-day VWAP.
According to Godolphin, the farm-in and joint agreement takes in two tenements totalling 349 square kilometres with mineralisation hosted in a Late Devonian intrusive complex.
The company says the Lachlan Fold Belt in NSW is an ideal location for REE projects with the region also housing Australian Strategic Materials' rapidly progressing Dubbo Project. In addition, the ongoing support of REE projects by the Australian Federal Government likely added to the project’s appeal for Godolphin.
REEs linked with the Devonian-aged Narraburra Granite were first discovered at Narraburra in 1999. The area was later earmarked as one of Australia's largest zirconium, REE, and rare metal deposits, with high-grade lithium mineralisation also found within the district’s margins.
Following Narraburra's discovery the project has undergone an assortment of exploration, including airborne magnetic and radiometric surveying, geological mapping, ground radiometric surveying, bedrock geochemical sampling, whole-rock analysis, petrological and mineralogical studies, preliminary metallurgical testing and RC drilling
The various program’s found extensive amounts of rare metals including zirconium, yttrium, niobium, gallium and lithium, as well as REEs like neodymium and praseodymium within the ground’s geology.
Narraburra's previous owner, Capital Mining reported a JORC 2004 compliant inferred resource of 73.2 million tonnes with grades of 1250 grams per tonne Zirconium dioxide, 327 grams per tonne rare earth oxides, 146 grams per tonne yttrium oxide, 126 grams per tonne niobium pentoxide, 54 grams per tonne gallium oxide and 118 grams per tonne lithium oxide.
The Government’s Critical Minerals Office has flagged Narraburra as a critical minerals project meaning Godolphin could apply to the department for funding, information and support as it looks to drive the project into action.
Godolphin will now continue its data review of Narraburra and begin work on an infill and extensional RC drilling campaign as it moves towards a mineral resource estimate at the project. Those numbers will be the criteria to judge just how shrewd Godolphin’s purchase has been.
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