Godolphin fixes focus on Narraburra and Yeoval as it sells off Lewis Ponds and Mt Bulga for $11m

Special Report: Godolphin Resources has inked an $11m deal with Minerals Pty Ltd to offload its Lewis Ponds and Mt Bulga assets and therefore bolstering exploration funds for its highly prospective Narraburra REE and Yeoval copper-gold projects in NSW.

Narraburra is Godolphin Resources’ (ASX:GRL) flagship project and has a 94.9Mt @ 739ppm TREO resource, including a higher-grade zone of 20Mt @ 1,079ppm TREO, including valuable magnetic REEs such as neodymium and praseodymium (NdPr).

Recent results confirmed the project may be amenable to low-cost and near-term mining from shallow recoveries after an additional 18 samples demonstrated recoveries of up to 75% high-value magnetic rare earths.

It’s also accelerating exploration at its Yeoval copper-gold project, where RC drilling hit into structural zones with the potential for high-grade copper mineralisation at the Cyclops Prospect, and is awaiting the return of rock chip samples collected recently from the Vaughn’s Ridge Prospect from the lab.

Sale of non-core assets delivers timely cash injection

Terms of the sale are a $50,000 deposit, which the company has secured – this makes up a total payment of $11m cash in five instalments, starting with an upfront payment of $2.95m to GRL for all shares in its subsidiary TriAusMin, which owns the projects, by battery metals company Minerals Pty Ltd, led by Mark Moddejongen.

GRL MD Jeneta Owens says the deal is a transformative transaction for the company.

“Importantly, the sale will provide Godolphin with non-dilutive funding to rapidly advance its flagship Narraburra REE project, along with its other advanced stage exploration projects and then ongoing significant funding over subsequent years.”

“The proposed sale highlights the inherent value of the company’s existing portfolio of projects. Based on the company’s group financial position at 30 June 2023, there is expected to be an approximate $5.1m increase in net assets as a result of the increase in cash.

“This transaction represents a major milestone for the company and provides Godolphin with exceptional staged funding flexibility, which will defray future capital raisings and shareholder dilution.

“We look forward to providing additional updates as due diligence is completed and the binding sale agreements are completed.”

The drill bit is turning at Yeoval East and Cyclops

Elsewhere in NSW, the explorer has also completed RC drilling at highly prospective prospects within its Yeoval copper-gold project hosted on NSW’s prolific Lachlan Fold Belt, showing up to 1.21% copper from assays.

Both Cyclops and Yeoval East are within the EL 8538 tenement, where RC drilling targeted multiple structural zones with the potential to host high-grade copper mineralisation.

Eight holes were completed for a total of 1,624m, with a highlight at hole GYVRC005 which showed 18m @ 0.41% copper from 32m, including 6m @ 1.21% copper from 32-38m at Cyclops.

Field mapping at GRL’s Vaughans Ridge prospect was also completed – with multiple targets for follow-up exploration identified.

The Vaughans Ridge prospect is a new focus area and is considered highly prospective given the strike extent of skarn style alteration and mineralogy identified by recent mapping, which includes the identification of significantly elevated gold values in historical rock chip samples.

Map of identified prospects at the Yeoval project. Source: GRL

Owens says the results highlight further intersections of >1% copper at the Cyclops prospect and has increased the team’s overall understanding of the mineralisation style which will inform future plans for ongoing exploration.

“We are also highly encouraged by our recent mapping initiatives at the Vaughans Ridge prospect,” Owens says.

“This work has identified highly prospective geology and a vast area of typical skarn style alteration, with a large strike extent of gossanous silica, iron oxide and pyrite.

“This is highly encouraging for future work. Skarn deposits can be very high-grade and lucrative and make for an excellent exploration target.”

Rock chip sampling results are expected early in 2024.

What’s next?

Drilling results at both the Cyclops and Yeoval East Prospects will be fully evaluated, including synthesising with existing data, which will form the basis for any additional exploration activities.

Geochemical assays resulting from the recently collected rock chips from Vaughans Ridge Prospect are expected early next year.

The results are to be appraised in conjunction with planning for further detailed mapping and sampling along the significant 6km strike length of geophysical magnetic high response, interpreted as the continuation of the skarn alteration system.

Other geophysical methods, such as an airborne electromagnetic (EM) survey, are being considered to refine drill targets for this area.

Key areas for follow-up will be those in which historical elevated gold values have been identified, or similar results from the most recent campaign of rock chips.

This article was developed in collaboration with Godolphin Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.