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

Mineral exploration small-cap group, Great Boulder Resources Limited (ASX: GBR) is accelerating its drilling programme at its Mt Venn Copper-Nickel-Cobalt Project in Western Australia post receiving commitments to raise $2.5 million in a placement. Its Eastern Mafic complex seems to have confirmed the potential to host significant massive sulphide mineralisation. The stock that was down 26% in last six months, seems to be regaining momentum lately. The exploration risks do prevail, but the recent updates are keeping the same at a check and favourable commodity prices can provide boost in the future while GBR’s exposure to gold bullion can help during volatile conditions.  

Emerging strong scale of copper-nickel-cobalt assets at Mt Venn project: The group reported that it has taken a key step towards finding the sources at its Mt Venn copper-nickel-cobalt discovery following the ground survey work. Primarily, the moving loop electromagnetic (MLEM) survey at Mt Venn, which is 15% complete, has confirmed the presence of large bedrock conductors. This represents an EM response consistent with massive sulphide mineralization and confirms the results of a recent airborne EM survey. The objective of the MLEM survey was to validate and better define the SkyTEM airborne anomalies and generate conductor plates for drill hole testing. Initial results have confirmed the presence of very large bedrock conductors validating the airborne EM results. Further, Management stated that each round of exploration provided stronger evidence of the outstanding potential at Mt Venn. These results continue to strengthen the management’s confidence that the Eastern Mafic complex is the feeder structure and may host the higher-grade source of mineralization within the larger Mt Venn project. On the other hand, MLEM survey and the geochemical results are all lining up perfectly. In addition to these exceptional results at the Eastern Mafic, the group has outlined extensive mineralization immediate next door at Mt Venn, and, we expect that this known mineralization continues to grow with every drill program and remains open in every direction.


Progress of Moving Loop EM Survey (Source: Company Reports)

Raised $2.5 Mn to accelerate Drilling at Mt Venn Copper-Nickel-Cobalt Project: Recently, the company has received commitments for $2.5 Mn via share placement at 27 cents per share, representing a zero discount. The group will issue around 9.26 million new shares under the placement event which will be resulting into an expanded share capital of about 79.86 Mn ordinary shares. This fund will enable the company to drill the Eastern Mafic complex where numerous large bedrock conductors consistent with massive sulphide mineralization have been identified. Following this, the Group is now fully funded to execute its drilling program at Mt Venn and Eastern Mafic complex.

Positive results of earlier assay from phase 2 RC and diamond drilling at Yamarna (Mt Venn): During the March quarter, the group received assay results from its phase 2 RC (reverse circulation) and diamond drilling that showed the major copper-nickel-cobalt discovery at Mt Venn. The results included 26.2m at 0.5% Cu, 0.2% Ni, 0.06% Co from 12m down-hole; 33m at 0.5% Cu, 0.1% Ni, 0.05% Co from 76m down-hole; 18m at 0.7% Cu, 0.2% Ni, 0.05% Co from 92m down-hole; 4.4m at 1.7% Cu from 142m down-hole; 12.4m at 0.7% Cu, from 97m down-hole and 10m at 0.7% Cu from 123m down-hole.


Drilling results at Mt Venn (Source: Company reports)

Large Scale Gold Discovery Opportunity at Tarmoola project: GBR has executed a JV agreement to earn 75% interest through exploration expenditure of $1,400,000 over a 5-year period. Furthermore, the group finished soil sampling program over the identified target along with Ursus and Marionette zones based on the recent quarter update, located 40km north-west of Leonora in WA. With this, in-fill geological mapping was also undertaken after the end of the March quarter to further refine the drill targets. Once the results from the soil sampling and mapping are received in the June quarter of the year, then RC drill program will be designed to test the priority targets. Based on following developments, we expect that the group will have a lot of opportunity in Tarmoola project in terms of discovering Gold at large scale.

Jundee South-final result expected shortly: GBR owns a 100% interest in the Jundee South Project with the objective of strengthening the quality at large scale gold mining camps. As per the latest quarterly update, GBR completed field mapping, re-processing of geophysical data and evaluation of the previous drilling that generated 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. The prospects of the Jundee South project are 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. During the quarter, Great Boulder undertook auger geochemistry to test for gold anomalism associated with the Jundee Dolerite on its tenement. The auger program is designed to test priority targets along the Jundee Dolerite on an 80m x 40m grid. The close-spaced auger is required as Jundee-style mineralization is typically narrow, high-grade gold with only a moderate alteration signature away from the main mineralized lodes. The final assay results are expected soon, after which GBR will plan follow-up air core drilling to test surface gold anomalies detected from this first-pass auger sampling.

Improvement in financial performance: Based on top-line growth, net loss after tax came down to $376,979 in 1HFY18 from $407,616 in 1HFY17. This improved performance shows that the group has its objectives intact and has the potential to grow further. On the balance sheet front, current ratio of the company stood at 7.3x as at December 31, 2017, representing high liquidity of the firm. Moreover, the group’s cash position at the end of half year was $3.4 Mn against $5.5 Mn of previous corresponding period. The cash position came down due to incurred investment in exploration program during the same period.

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Income Statement (Source: Company Reports)

Corporate Highlight: Recently, the group informed the market that Mr. John Sendziuk retired from his role as Company Secretary and that Ms. Melanie Ross joined the Board as a Company Secretary. Moreover, the group issued 11,028,132 ordinary fully paid shares and 8,483,178 unlisted options from escrow as on 7 July 2017. 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. 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.

Stock Performance: The group informed ASX that one of its director Stefan Murphy had a direct interest in the company and acquired 2,000,000 performance rights under the incentive plans. Meanwhile, the shares of GBR have risen 75.0% in the past one year but down by 16.42% in past one month as at May 23, 2018. With sentiments again falling in positive territory, the stock was up 5.4% on May 25, 2018. Looking at the current trading scenario, we give a “Speculative Buy” recommendation on the stock at the current market price of $ 0.295, considering financials and funding position, initialpositive results from Mt Venn project, and primary focus on exploration, discovery and delineation of economic gold deposits for advancement into production.
 

GBR Daily Chart (Source: Thomson Reuters)

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