Augur Resources (ASX: AUK) has entered into a farm-in agreement with Zodiac Resources Pty Ltd covering Augur’s Yeoval project in central western New South Wales.
The Yeoval project is prospective for gold and copper-gold-molybdenum porphyry and gold epithermal targets and is non-core to Augur’s focus on its advanced projects in Indonesia. The company is currently expanding its portfolio of advanced gold and copper projects at Jampang and Wonogiri.
In order to earn a 75% interest in the Yeoval project, Zodiac must spend a minimum of $300,000 on drilling expenditure over the next 9 months.
Zodiac must also pay Augur $450,000 within 12 months and spend a minimum of a further $1,700,000 on exploration of the project over the next 24 months.
On completion of the farm-in period Augur will have an option to contribute 25% to expenditure on the project or progress to a free carry net smelter royalty of 2.5%.
On April 4 Augur announced extensive gold mineralisation hits have highlighted further potential for a large gold bulk tonnage deposit at the Wonogiri project in Central Java.
The latest wide trenching result from the Randu Kuning prospect included 98 metres at 0.91 grams per tonne (g/t) gold and 0.29% copper.