Ausgold Ltd executive chairman John Dorward said: โThis new tenement complements our strong regional landholding surrounding our flagship Katanning gold project, which includes the Kulin project as well as other advanced exploration prospects such as Duggan and Nanicup BridgeโZinger.โ
Under the earn-in and joint venture agreement, Ausgold can earn up to a 70 per cent interest over 3.5 years. It must spend $250,000 within 18 months to earn 51 per cent in stage one, and a further $360,000 across two years in stage two to earn an additional 19 per cent.
If Ausgold earns 70 per cent, it will signify completion of the earn-in and Critica will retain a 30 per cent contributing interest. On reaching a decision to mine, Critica can convert its stake into a 1.5 per cent net smelter royalty.
Ausgold plans to lodge a program of work early next year and begin a maiden drilling program in the second or third quarter of next year. Drilling will target the high-priority gold-in-soil anomalies and mineralisation unearthed in the trenching program to explore the projectโs potential for the in-demand precious yellow metal.
Gold has maintained its stellar run from last year. The gold price is up almost 28 per cent this calendar year to sit at US$3358 (A$5224) per ounce.
Critica remains focused on its massive Brothers rare earths project, which contains the significant Jupiter deposit, west of Mount Magnet in WAโs Mid West region.
Jupiter has a whopping global resource of 1.8 billion tonnes at 1700 parts per million (ppm) total rare earth oxides, including a higher-grade component of 520mt grading 2200ppm total rare earth oxides.
The resource includes a significant stash of valuable magnet rare earth oxides, with a global resource of 682,000t of magnet rare earth oxides and a 260,000t higher-grade parcel. In addition to praseodymium and neodymium, the resource contains higher-valued heavy rare earths terbium and dysprosium.
Management says its Brothers-Jupiter project is Australiaโs biggest and highest-grade clay-hosted rare earths resource.
While the rare earths market has seen marginally elevated pricing over the past month after a difficult period, gold has been on a gangbuster run this year. It makes sense for Critica to look at extracting value from the Kulin project while there is positive sentiment for the yellow metal and Ausgold has the funds to do the heavy lifting.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
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