asx announcement quarterly report to 30 june 2017 · 2018-05-14 · asx announcement 25 july 2017...

ASX Announcement

25 July 2017

Quarterly Report to 30 June 2017

Yamarna (Mt Venn) - Copper-Nickel-Cobalt

▪ Technical review completed at the Mt Venn Copper-Nickel-Cobalt

prospect within the Yamarna Project in WA.

▪ Preparations underway to follow-up maiden drill result of 1.7%

copper (plus nickel and cobalt) and additional targets generated in

the technical review.

▪ Heritage survey completed and clearance received to undertake

exploration activities at Mt Venn.

▪ Logging of the maiden hole confirmed copper-nickel mineralisation

is associated with sulphides with no evidence of carbonaceous

sediments.

▪ A ground-based EM and aircore geochemistry programme has now

been designed and is ready to implement

▪ Application lodged for Entry Permits to the Cosmo-Newberry

Aboriginal Reserve to enable exploration to commence.

Tarmoola - Gold

▪ Initial aircore drill programme completed at Tarmoola, identifying

multiple granite intrusion phases.

▪ Regolith profile mapped from new drilling and included in an

updated gravity inversion model.

▪ Updated gravity inversion model received and being used to

interpret granitoid intrusions that may represent intrusion related

gold systems.

▪ Surface mapping scheduled to commence in the first week of

August. Results will be incorporated into the new geological model

and used to plan next phase of drilling at Tarmoola, scheduled for

the September quarter.

Corporate

▪ Great Boulder continues to carefully manage its corporate and

project expenditure, with $4.3m in cash at the end of the quarter.

▪ Post quarter end, 11,028,132 ordinary fully paid shares and

8,483,178 unlisted options were released from escrow on 7 July

2017.

▪ No new securities have been issued during the quarter. Total

ordinary shares on issue remain at 68,394,000 and 38,086,750

unlisted options.

ASX Code: GBR

Capital Structure

Ordinary Shares: 68.4m

Unlisted Options: 38.1m

Unvested Performance Rights: 2m

Current Share Price: 12₵

Market Capitalisation: A$8.2m

Cash: A$4.3m

Debt: Nil

Board of Directors

Greg Hall

Non-Executive Chairman

Stefan Murphy

Managing Director

Murray Black

Non-Executive Director

Melanie Leighton

Non-Executive Director

Substantial Shareholders

Exploration Capital Partners: 5.2%

Directors: 9.7%

Key Advisors: 7.8%

Projects

Yamarna

Tarmoola

Jundee South

Balagundi

Broadwood

Key Points

ASX Announcement

25 July, 2017

2

Yamarna

Technical Review & Exploration Plan

An independent technical review of the Mt Venn igneous complex was commissioned to better

understand the formation and architecture of the layered mafic intrusion, source and introduction of

sulphur into the system, and generate targets of likely nickel-copper sulphide accumulation.

The review was undertaken in conjunction with data compilation and assessment of previous

exploration results near the Mt Venn prospect. Great Boulder geologists logged Gold Road hole

15GYWB0004 which was situated on the edge of the large EM anomaly and which had been

previously sampled and assayed, returning grades of +1.7% Cu. The geological logging confirmed

the copper-nickel mineralisation is associated with primary sulphides. Importantly for EM planning

and targeting, there was no evidence in the drill hole of carbonaceous or graphitic shales that may

produce spurious results.

The technical review and data compilation has now been completed for Mt Venn and has been

incorporated in the design of the upcoming exploration programme.

Great Boulder has engaged Newexco to design and implement a ground-based EM (moving loop)

survey. The XTEM data already available at Mt Venn was used to assist in planning the location

and size of the survey, with six initial areas targeted for the EM survey (Figure 1).

An aircore geochemical programme has also been planned to cover the entire Mt Venn intrusion

(Figure 1). The primary purpose of the drilling is to map the geochemical distribution of nickel and

copper throughout the intrusion and to identify zones of metal depletion and enrichment.

Mapping nickel-copper depletion in the intrusion is an indicator of a sulphur-saturated system that

has potentially ‘stripped’ the metals from the magma to form massive sulphide deposits. The

geochemistry will be used in conjunction with the ground EM to identify and prioritise targets for

follow-up RC and diamond drilling.

It is anticipated that the EM and geochemistry programmes will take approximately 4-6 weeks to

complete after receiving entry permits, with RC drilling to commence on priority targets soon after.

Heritage Survey & Entry Permits

A Heritage survey was completed in early June, covering the entire 9km-long Mt Venn intrusive

complex as well as a large intrusion immediately east of the Mt Venn complex. A total of 195km of

tracks were surveyed and cleared as part of Great Boulder’s plan to undertake ground-based EM

and drilling activities.

The exploration program will commence once Great Boulder receives its Aboriginal Reserve entry

permit. The entry permit is currently in place for E38/2320 (acquired from Gold Road) and a permit

application is currently being assessed for the Yamarna JV tenements.

Since the last market update on 28 June, Great Boulder has been informed that a decision on the

Aboriginal Reserve entry permit has been deferred pending additional information being provided

to the Aboriginal Land Trust (ALT). This information has been provided and we await confirmation

from the ALT that our application has been considered by the committee and a recommendation

made to the Minister.

Once Great Boulder receives its entry permit, the ground EM and aircore geochemistry

programmes are ready to commence immediately, pending drill rig and EM crew availability.

Exploration Activities

ASX Announcement

25 July, 2017

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Figure 1. Ground based moving loop EM survey and aircore drilling locations (magnetic image right, XTEM image left)

Zone From (m) To (m) Interval (m) Cu (%) Ni (%) Co (ppm)

Upper 67 73 6 0.54 0.08 244

including 1 1.53 0.12 341

Lower 85 88 3 0.85 0.12 360

including 1 1.71 0.07 235

Figure 2. RC chip trays from drill hole 15GYWB0004 showing mineralised intersections

15GYWB0004

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25 July, 2017

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The Mt Venn intrusion appears to be formed by multiple magma phases which have slightly

different chemistry, including the timing and differences in how sulphur has been incorporated into

the magma to form the nickel-copper sulphide minerals.

In addition to the main Mt Venn complex, a mafic complex comprising several mafic-ultramafic

units within a granitoid country rock is located immediately southeast of Mt Venn. Multi-element

analysis from historical drilling has identified nickel-copper depletion in mafic units, suggesting a

sulphur saturation event has occured. Great Boulder has received heritage clearance to undertake

exploration over the eastern mafic complex and will assess plans for this area once exploration

commences at Mt Venn.

Figure 3. Updated geological map following collation of previous exploration and re-processed geophysics

Mt Venn Igneous Complex

Eastern Mafic Complex

ASX Announcement

25 July, 2017

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Tarmoola

During the quarter, Great Boulder completed a 67 hole (1,950m) scout AC geochem drilling

program at its Tarmoola gold project, located 40km northwest of Leonora in WA. Given the large

tenement holding, the drilling was wide spaced, designed with the purpose of gathering as much

information on the underlying geology, specifically:

1. Map the regolith profile to understand to the amount of transported cover and validate the

auger geochemistry undertaken in November-December 2016;

2. Provide end of hold geology and geochemistry to differentiate granite intrusions and map

the granite-greenstone contact; and

3. Provide additional data to generate a more detailed, constrained gravity inversion model.

The drilling showed a very distinct

stripped regolith profile to the east

where basalts and dolerites dominate

the greenstone sequence with little to

no weathering profile. West of the

outcropping greenstone is dominated

by extensive and variable depth

transported alluvium and colluvium

which has shed off the eastern

outcropping area and also been

transported south west along more

deeply incised paleochannels. A large

greenstone sequence that wraps

around the north and west of the

dominant Raeside batholith also

contains zones of outcrop with minimal

weathering profile.

Given the relatively shallow drilling,

particularly over the outcropping and

sub-cropping greenstone, sequence,

Great Boulder completed all priority 1

and 2 planned holes, with the exception

of holes in the southwest where difficult

drilling conditions were encountered

through a large drainage system.

End-of-hole samples were collected for

multi-element analysis and assessed

for different granite intrusion phases

and potential alteration signatures. This

data was also utilised in updating the

gravity inversion model which has

identified key structures and additional

granite intrusions under cover that have

not yet been tested (figure 4 and 5).

Figure 4. GBR aircore drilling and all historical drilling over gravity image with gravity inversion contours showing interpreted granite intrusions

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25 July, 2017

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During the September quarter, Great Boulder will undertake an extensive field mapping exercise to

integrate with its gravity and geochem data to generate a predictive geological model for intrusion

related gold mineralisation. It is anticipated the mapping will be completed in August with a

subsequent phase 2 aircore programme in September-October.

Jundee South

Final multi-element data was received for the 3,712m RC programme completed at Jundee South

during the March quarter. The results showed strong sodic alteration in and around the

porphyries, along with Mo-W-Bi pathfinder anomalism. Moderate to strong sericite alteration was

identified in the dolerites and sediments with associated As-Sb pathfinder anomalism. This

alteration signature is consistent with what would be expected for a hydrothermal system within the

Jundee mine sequence.

Given the drilling results showed strong evidence of a hydrothermal system within the Jundee

South tenement, Great Boulder will next undertake detailed field mapping of the Jundee mine

sequence to identify possible controlling structures and construct a predictive geological model for

gold mineralisation.

During the quarter, Great Boulder applied for an extension of term for the Jundee South

Exploration Lease which was granted for a further one year (until 28 July 2018). Field mapping is

scheduled to commence in August (immediately after Tarmoola), and a decision on the next phase

of drilling will be made once the geological model has been updated.

NE Bounding Fault

Significant Gold Bearing NW Structures

Potential NW Structures

Granite Intrusion with Density Contrast

GBR Aircore Drilling

Figure 5. Oblique view of Tarmoola gravity inversion model, showing known NW mineralised structures and potential repetitions of these structures further south.

Tarmoola Fault

Ursus Fault

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25 July, 2017

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Other Projects

No field activities were undertaken at Balagundi or Broadwood during the quarter.

At Balagundi the Company continues to compile all historical drilling and assay data and continues

to assess exploration and development options.

At Broadwood, a programme of work application has been made for an auger geochemical

programme. As the project is located in close proximity to Kalgoorlie with various land use

requirements, the approvals process is proving extremely complex. Great Boulder has recently

received consent for various conditions associated with the Broadwood tenements to allow

exploration to proceed and now awaits formal approval of its programme of works.

Jundee Mine

Elliots

Area 7

Figure 6. Regional map showing the Jundee gold mine, satellite deposits and geology in relation to GBR’s Jundee South Project. Insert is the solid geology interpretation recent RC drill hole locations and traces.

ASX Announcement

25 July, 2017

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At the end of the March quarter Great Boulder had $4.3m in cash.

The following changes occurred to the issued capital of Great Boulder subsequent to the release of

the March 2017 quarterly report:

• Release of 11,028,132 ordinary fully paid shares and 8,483,178 unlisted options from

escrow on 7 July 2017.

The issued share capital of the Company at the date of this report is:

Class of Securities Issued Capital

Ordinary fully paid shares 68,394,000

• Quoted on the ASX 48,109,357

• Escrowed (18 Nov. 2018) 20,284,643

Unlisted Options (exercisable at $0.20 and expire 18 Nov. 2020) 38,086,750

Unlisted Performance Rights 2,000,000

Competent Person’s Statement

Exploration information in this Announcement is based upon work undertaken by Stefan Murphy whom is a Member of the Australasian Institute of Geoscientists (AIG). Mr Stefan Murphy has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a ‘Competent Person’ as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code). Mr Stefan Murphy is Managing Director of Great Boulder and consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Forward Looking Statements

This Announcement is provided on the basis that neither the Company nor its representatives make any warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Announcement and nothing contained in the Announcement is, or may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law. The Announcement contains material which is predictive in nature and may be affected by inaccurate assumptions or by known and unknown risks and uncertainties, and may differ materially from results ultimately achieved.

The Announcement contains “forward-looking statements”. All statements other than those of historical facts included in the Announcement are forward-looking statements including estimates of Mineral Resources. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, copper, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of the Announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. All persons should consider seeking appropriate professional advice in reviewing the Announcement and all other information with respect to the Company and evaluating the business, financial performance and operations of the Company. Neither the provision of the Announcement nor any information contained in the Announcement or subsequently communicated to any person in connection with the Announcement is, or should be taken as, constituting the giving of investment advice to any person.

The exploration results contained in this report were previously reported by the Company in its announcements released to ASX and listed below. The Company confirms that it is not aware of any new information or data that materially affects the information included in the Company’s previous announcement.

▪ Copper-Nickel-Cobalt Intersected at Yamarna (29 March 2017) http://www.asx.com.au/asxpdf/20170329/pdf/43h3td4shxd1p5.pdf

▪ Drilling to Commence at Tarmoola and Jundee South Results (21 April 2017) http://www.asx.com.au/asxpdf/20170421/pdf/43hn2lxh24bx01.pdf

Corporate

http://www.asx.com.au/asxpdf/20170329/pdf/43h3td4shxd1p5.pdf

http://www.asx.com.au/asxpdf/20170421/pdf/43hn2lxh24bx01.pdf

ASX Announcement

25 July, 2017

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Appendix 1 – Tenement Schedule

In line with obligations under ASX Listing Rule 5.3.3, Great Boulder provides the following information relating to its mining tenement

holdings as at 31 March 2017.

Project Tenement Number Status % Held % Earning

Changes during the Quarter

Balagundi M25/194 Granted - 75%

Broadwood P26/4009 Granted - 75%

Broadwood P26/4010 Application - 75%






Jundee South E53/1101 Granted 100% -

Tarmoola E37/1241 Granted - 75%

Tarmoola E37/1242 Granted - 75%

Tarmoola P37/8667 Granted - 75%


















Tarmoola P37/8685 Granted - 75% Tarmoola P37/8935 Application 100% -

Yamarna E38/2320 Granted - 75%






Yamarna P38/4178 Granted - 75%

ASX Announcement

25 July, 2017

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+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

Great Boulder Resources Ltd

ABN Quarter ended (“current quarter”)

70611695955 30 June 2017

Consolidated statement of cash flows Current quarter

$A’000

Year to date

(12 months)

$A’000

1. Cash flows from operating activities

1.1 Receipts from customers

1.2 Payments for

(332) (1,676) (a) exploration & evaluation

(b) development

(c) production

(d) staff costs (86) (301)

(e) administration and corporate costs (92) (362)

1.3 Dividends received (see note 3)

1.4 Interest received 6 17

1.5 Interest and other costs of finance paid

1.6 Income taxes paid (Municipal Tax)

1.7 Research and development refunds

1.8 Other (provide details if material) GST 31 (10)

1.9 Net cash from / (used in) operating

activities

(473) (2,332)

2. Cash flows from investing activities

- (58)

2.1 Payments to acquire:

(a) property, plant and equipment

(b) tenements (see item 10) (Lease

payment)

ASX Announcement

25 July, 2017

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$A’000

Year to date

(12 months)

$A’000

(c) investments (4) (4)

(d) other non-current assets

2.2 Proceeds from the disposal of:

(a) property, plant and equipment

(b) tenements (see item 10)

(c) investments

(d) other non-current assets

2.3 Cash flows from loans to other entities

2.4 Dividends received (see note 3)

2.5 Other (provide details if material)

2.6 Net cash from / (used in) investing

activities

(4) (62)

3. Cash flows from financing activities

- 6,394 3.1 Proceeds from issues of shares

3.2 Proceeds from issue of convertible

notes

3.3 Proceeds from exercise of share

options

3.4 Transaction costs related to issues of

shares, convertible notes or options

- (747)

3.5 Proceeds from borrowings

3.6 Repayment of borrowings (28)

3.7 Transaction costs related to loans and

borrowings

3.8 Dividends paid


Seed capital refunds

-

(313)

3.10 Net cash from / (used in) financing

activities

- 5,306

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25 July, 2017

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$A’000

Year to date

(12 months)

$A’000

4. Net increase / (decrease) in cash and

cash equivalents for the period

4,733 1,344

4.1 Cash and cash equivalents at

beginning of period

4.2 Net cash from / (used in) operating

activities (item 1.9 above)

(473) (2332)

4.3 Net cash from / (used in) investing


(4) (62)

4.4 Net cash from / (used in) financing


- 5,306

4.5 Effect of movement in exchange rates

on cash held

4.6 Cash and cash equivalents at end of

period

4,256 4,256

5. Reconciliation of cash and cash

equivalents

at the end of the quarter (as shown in

the consolidated statement of cash

flows) to the related items in the

accounts

Current quarter

$A’000

Previous quarter

$A’000

5.1 Bank balances 727 1,708

5.2 Call deposits 3,529 3,025

5.3 Bank overdrafts

5.4 Other (provide details)

5.5 Cash and cash equivalents at end of

quarter (should equal item 4.6

above)

4,256 4,733

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25 July, 2017

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6. Payments to directors of the entity and their associates Current quarter

$A'000

6.1 Aggregate amount of payments to these parties included in

item 1.2

88

6.2 Aggregate amount of cash flow from loans to these parties

included in item 2.3

6.3 Include below any explanation necessary to understand the transactions included in

items 6.1 and 6.2

Directors salaries and superannuation

7. Payments to related entities of the entity and their

associates

Current quarter

$A'000

7.1 Aggregate amount of payments to these parties included in

item 1.2

7.2 Aggregate amount of cash flow from loans to these parties

included in item 2.3

7.3 Include below any explanation necessary to understand the transactions included in

items 7.1 and 7.2

8. Financing facilities available

Add notes as necessary for an

understanding of the position

Total facility

amount at quarter

end

$A’000

Amount drawn at

quarter end

$A’000

8.1 Loan facilities

8.2 Credit standby arrangements

8.3 Other (please specify)

8.4 Include below a description of each facility above, including the lender, interest rate

and whether it is secured or unsecured. If any additional facilities have been

entered into or are proposed to be entered into after quarter end, include details of

those facilities as well.

ASX Announcement

25 July, 2017

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9. Estimated cash outflows for next quarter $A’000

9.1 Exploration and evaluation 462

9.2 Development

9.3 Production

9.4 Staff costs 84

9.5 Administration and corporate costs 151


9.7 Total estimated cash outflows 697

10. Changes in

tenements

(items 2.1(b) and

2.2(b) above)

Tenement

reference

and

location

Nature of interest Interest at

beginning

of quarter

Interest

at end of

quarter

10.1 Interests in mining

tenements and

petroleum

tenements lapsed,

relinquished or

reduced

10.2 Interests in mining

tenements and

petroleum

tenements acquired

or increased

Compliance statement 1 This statement has been prepared in accordance with accounting standards and policies

which comply with Listing Rule 19.11A.

2 This statement gives a true and fair view of the matters disclosed.

Sign here: .......................................................... Date: 25 July 2017

(Company secretary)

Print name: John Sendziuk

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have

been financed for the past quarter and the effect on its cash position. An entity that wishes to

ASX Announcement

25 July, 2017

15

disclose additional information is encouraged to do so, in a note or notes included in or

attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards,

the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral

Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report

has been prepared in accordance with other accounting standards agreed by ASX pursuant to

Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash

flows from investing activities, depending on the accounting policy of the entity.

asx announcement quarterly report to 30 june 2017 · 2018-05-14 · asx announcement 25 july 2017...

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