Through its subsidiary Kobalamin Ltd, Gindalbie has the right to earn up to 75% interest in Mt Gunson and its surrounding tenement package.
The agreement was finalised with Terrace Mining Pty Ltd in March 2017 and pursuant to its terms, Kobalamin has written to Terrace Mining to request the transfer of a 25% interest in Mt Gunson after reaching the first stage commitment.
Along with a prospective tenement portfolio, Mt Gunson’s assets include existing JORC-compliant deposits at Windabout and MG14 which contain notable copper, cobalt and silver mineralisation.
The MG14 deposit has an indicated mineral resource of 1.83 million tonnes at 1.24% copper, 334 ppm cobalt and 14 g/t silver.
Windabout has an indicated resource of 17.67 million tonnes at 0.77% copper, 492 ppm cobalt and 8 g/t silver.
Stage II exploration underway
The decision to begin stage II of the Mt Gunson farm-in was reached in May, including a decision to progress the pre-feasibility study.
A drilling program to obtain bulk metallurgical samples is expected to start in early September, subject to environmental approvals.
Kobalamin is undertaking the feasibility work on the project and it is expected that the stage II expenditure commitment of $2.5 million will be met during the first half of 2019.