Augur Resources’ (ASX: AUK) farm-in partner Zodiac Resources has met the A$300,000 initial farm‐in drilling condition for the Yeoval copper‐gold project in central New South Wales.
Under the previously announced agreement, Zodiac must now make a $450,000 option payment to Augur by 4 April 2012 if the company decides to continue to explore the project’s tenements.
To acquire a 75% interest in Yeoval Zodiac needs to spend a further $1.7 million on drilling by 4 April 2014.
On completion of the farm‐in period, Augur will have an option to contribute 25% to expenditure on the project or progress to a free carried net smelter royalty of 2.5%.
The Yeoval project, which covers around 147 square kilometres, is prospective for porphyry copper‐gold and molybdenum mineralisation, epithermal gold and silver mineralisation, and magnetite rich copper‐gold mineralisation.
The project area hosts the Yeoval Porphyry deposit which has an Inferred JORC Resource of 12.9 million tonnes at 0.38% copper, 0.14 grams per tonne (g/t) gold, 120.1 parts per million molybdenum and 2.2g/t silver.
The resource is open at depth, to the east and to the south.
The Yeoval project is non‐core to Augur's focus on advanced projects, specifically the Wonogiri gold and copper project in central Java, Indonesia.
Augur is undertaking a significant drill program to determine the extent of the gold and copper porphyry mineralisation at the Randu Kuning prospect within the Wonogiri licence area.
Highlights from drilling to date include 123.5 metres at 1.42g/t gold and 0.22% copper, 65 metres at 1.03g/t gold and 0.17% copper, 222 metres at 0.95g/t gold and 0.2% copper and 182 metres at 0.75g/t gold and 0.17% copper.
The Wonogiri project has become the flagship project of the company as drilling continues to indicate a substantial area of mineralisation associated with the Randu Kuning porphyry system.
Significantly, mineralisation at Randu Kuning has been identified from surface and remains open at depth.
In addition, the porphyry mineralisation remains open to the north and to the west.
The gold mineralised corridor at Randu Kuning has now been extended to more than 1300 metres.
Late last year Augur reached the milestone of attaining 51% ownership of the Wonogiri project, having met the required US$1.5 million spend on first stage exploration within 12 months of the acquisition agreement.
The company is now able to earn a further 29%, for a total 80% interest in the project, by spending an additional US$2 million on exploration before December 9, 2012.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/25093/augur-resources-zodiac-resources-meets-farm-in-milestone-at-yeoval-copper-gold-project-25093.html