- Godolphin Resources (GRL) signs a farm-in and joint venture agreement to earn up to a 75 per cent interest in the Narraburra rare earth elements (REE) project in central west New South Wales
- The project covers an area of 349 square kilometres and comprises two tenements
- The company says it will utilise historical data to progress a systematic resource drill-out to JORC 2012 standard, which is expected to commence in the second quarter
- To acquire the 75 per cent ownership, the company will be required to spend $3 million on exploration and issue $2 million in shares to EX9 over two tranches
- GRL shares up 8.33 per cent to 13 cents
Godolphin Resources (GRL) has signed a farm-in and joint venture agreement to earn up to a 75 per cent interest in the Narraburra rare earth elements (REE) project in central west New South Wales.
The company said the agreement follows an extensive review of the Lachlan Fold Belt for REE potential including its own tenements.
The two Narraburra tenements cover an area of 349 square kilometres.
Previous exploration work done on the project has included airborne magnetic surveys, geological mapping, mineralogical studies, preliminary metallurgical test work and wide-spaced rotary air blast (RAB) and reverse circulation (RC) drilling.
Godolphin said Narraburra hosts a historical REE mineral resource classified as inferred under the older 2004 JORC code that may not conform to the standards in the 2012 JORC code.
The company said it planned to utilise historical data to carry out a systematic resource drill-out to JORC 2012 compliance. It expected to commence drilling in the second quarter of 2022, subject to statutory approvals.
Under the terms of the earn-in agreement with EX9 Pty Ltd, Godolphin can progress to 51 per cent ownership of Narraburra by spending $1 million towards exploration work on the project within two years and then move to 75 per cent via a further $2 million in exploration and development expenditure within four years.
Along the way EX9 will be issued $2 million in Godolphin shares in two tranches as the latter passes earn-in milestones.
“We are very pleased to have secured this agreement with EX9 to progress a farm-in for the highly prospective Narraburra REE project,” Godolphin Managing Director Jeneta Owens said.
“Importantly, there has been considerable historic exploration activity undertaken, which provides us with abundant initial data, upon which we can base the next phase of project
assessment which we will now expedite.
“REEs are vitally important for the future growth of clean energy technologies.”
GRL shares closed the day’s trading session 8.33 per cent higher at 13 cents.