Company Overview: Great Boulder Resources Limited is a mineral exploration company, with a primary focus on exploration, discovery and delineation of gold deposits. The Company's Balagundi Project is located approximately 20 kilometers east of the Kalgoorlie Super Pit and the township of Kalgoorlie in the Eastern Goldfields District of Western Australia. Its Broadwood Project is located between the historical Binduli gold mining center and the Golden Mile/Kalgoorlie Super Pit alongside the township of Kalgoorlie. Its Jundee South Project is located east of Wiluna in the Eastern Goldfields district of Western Australia, approximately 10 kilometers along strike from the Jundee Gold Mine operated by Northern Star Resources Limited. Its Tarmoola Project is located over 40 kilometers north-west of Leonora. Its Yamarna project is located approximately 130 kilometers east of Laverton, and over 30 kilometers west of the Gruyere gold deposit in the Eastern Goldfields District of Western Australia.


GBR Details
 
Solid exploration upside at Mt Venn copper-nickel-cobalt project: Great Boulder Resources Limited (ASX: GBR) reported that a gravity survey at its Mt Venn copper-nickel-cobalt project in WA has found a major intrusive body related with the Eastern Mafic complex. The intrusive body is extensive, measuring 4km long (north-south) and 3km wide (east-west), and extends several kilometers further along structures to the west and south. The gravity survey was started post the positive exploration results from Mt Venn where extensive copper-nickel-cobalt sulphide mineralization has been delineated over several kilometers. This update shows a solid new potential at Mt Venn and management believes that this project could be a game-changer for the group. The group saw distinct mafic units with evidence of nickel-copper depletion and a separate suite of mafic rocks with elevated nickel-copper-cobalt and MgO from limited sampling finished over the Eastern Mafic complex. The geochemistry offers evidence that the Eastern Mafic complex is a part of the broader Mt Venn complex, but located in a different setting. The results of the gravity survey indicated a huge system as compared to the group’s earlier estimates, with the Eastern Mafic complex potentially representing an earlier-stage conduit or feeder structure that is prospective for nickel sulphide mineralisation. Accordingly, the group intends to begin an extensive aircore drilling program as soon as possible given the potential upside for exploration, to map the bedrock geology and identify prospective units for massive sulphide mineralisation. They are making plans for an airborne EM survey of the Eastern Mafic complex. Moreover, the new work programs and diamond drilling would start shortly at Mt Venn, post a major flooding from ex-Tropical Cyclone Kelvin that restricted access to the project since mid-February. Metallurgical test-work is also underway with the first flotation tests to produce a copper concentrate.
 

Bouguer Gravity image showing Mt Venn and Eastern Mafic intrusive complexes with bounding structures Inset showing gravity survey area (red) and Yamarna tenement boundary (white) (Source: Company reports)
 
Positive assay results from phase 2 RC and diamond drilling at Mt Venn: The Assay results that were reported after the phase 2 RC (reverse circulation) and diamond drilling showed a major copper-nickel-cobalt discovery at Mt Venn. The results included 4.4m at 1.7% Cu from 138m downhole; 18m at 0.7% Cu, 0.2% Ni, 0.05% Co from 92m downhole; 6m at 0.7% Cu, 0.1% Ni, 0.03% Co from 52m downhole; 26.2m at 0.5% Cu, 0.2% Ni, 0.06% Co from 12.3m downhole; 33m at 0.5% Cu, 0.1% Ni, 0.05% Co from 76m downhole and 8m at 0.3% Cu, 0.3% Ni, 0.09% Co from 25m downhole.
 

Drilling results (Source: Company reports)
 
Other Exploration highlights: As per the Tarmoola project highlights, the group finished a soil sampling program based on the recent quarter update, located 40km north-west of Leonora in WA. The program targeted an area of outcropping greenstone where earlier mapping and surface sampling identified a 2km trend of high grade gold rock chips associated with the Ursus Fault and Marionette shear, interpreted as a splay off the Ursus Fault. The Ursus fault is a regionally major structure which is considered a key gold bearing structure at the +2Moz King of the Hills gold mine. About 1,022 soil samples were collected over a 200m x 25m grid, covering the prospective Ursus-Marionette structures. The 25m spaced samples were composited into 100m lengths and then assayed for gold and a suite of pathfinder elements consistent with hydrothermal gold mineralisation. Zones of anomalous gold were then split back to their original 25m samples to better define the soil anomaly for RC drill hole design. These infill soil results have showed two zones of anomalous gold that would be RC drill tested. The first target is at the intersection of the Ursus and Marionette shear and extending into the hanging-wall where elevated gold in soil and rock chips (peak 23.9g/t Au) have been returned. Elevated arsenic occurs along the Ursus Fault, indicating the presence of a hydrothermal fluid pathway. Target 2 has a very coherent gold in soil anomaly for over 1km along the Marionette shear zone, with a peak grade of 158ppb Au return on the southernmost line making the target open to the south. Target 2 also has a strong geochemical pathfinder association, making it a priority target. The group is starting a maiden RC drill program by the late first quarter. Other projects of the group include Balagundi, which is located 20km east of the Kalgoorlie Super Pit, comprising major historical workings and high-grade drill intersections close to processing facilities. Meanwhile, the Broadwood project is located adjacent to the Binduli gold mine and 10km west of the Kalgoorlie Super Pit.

Jundee South project highlights: The group also started a major exploration program at its Jundee South project, which is immediately adjacent to Northern Star Resources’ (ASX: NST) Jundee gold mine in WA. The Field mapping, re-processing of geophysical data and evaluation of their earlier drilling led to a new geological model, with several new gold targets identified within Great Boulder’s Jundee South project. The gold targets are located along structural and lithological contacts within the Jundee Dolerite, from which +3Moz gold at 10g/t Au has been produced from the total 10Moz Jundee gold mine endowment. Great Boulder is currently undertaking a close-spaced auger geochemistry program through shallow cover to test for gold anomalism related with the Jundee Dolerite on its tenement. The prospects of the Jundee South project is further boosted by Northern Star’s ongoing exploration success within its Jundee operations, where new discoveries are being made within the Jundee Dolerite and broader Yandal greenstone belt. Management is confident on the prospectivity of Jundee South and expects more potential as this project is placed between Northern Star’s Jundee underground gold mine (10km north) and its recent Ramone discovery (20km south). The presence of Jundee Dolerite has been confirmed on the project, with several targets for gold mineralisation delineated within the dolerite sill and along structural and lithological contacts. The group finished a field mapping and surface sampling program at Jundee South, leading to an evolved geological model and now targets for hydrothermal gold mineralisation.  As per the updated geological model, a close spaced auger geochemistry program was designed and undertaken post the reporting period, with results still pending.

Corporate highlights: As on 7 July 2017, the group issued 11,028,132 ordinary fully paid shares and 8,483,178 unlisted options from escrow. Over 2,081,857 options were exercised, raising $416,000 in new funds. The preliminary EIS co-funded drilling grant of $108,000 and Research and Development refund of $155,000 were also received during the period. The group issued a further 125,000 ordinary shares upon the exercise of unlisted options, leading to a rise of the ordinary fully paid shares to 70,600,857. The loss from continuing operations for the half-year ending December 2017 after providing for tax narrowed to $376,979 as compared to $407,616 for previous corresponding period. Based on investments in exploration, the group’s cash position at the end of half year was $3.4 million against $5.5 million of previous corresponding period.
 

Profit/loss Statement (Source: Company Reports)
 
Stock performance: GBR is highly-leveraged to exploration success in WA goldfields and is now banking on positive results from Mt Venn with fast tracking of exploration in Eastern Mafic Complex. The updates on copper-nickel-cobalt sulphide mineralisation seem to be encouraging. Further, developments at Jundee South project are also expected to establish a stepping stone for the group. GBR stock has risen about 93% in last six months (as at March 22, 2018) but has been down from its last high peak seen in November 2017. Thus, the stock has room for growth given the trading scenario and the strong assets. We give a “Speculative Buy” at the current price of $0.315
  

GBR Daily Chart (Source: Thomson Reports)

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