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Predictive Discovery retains minority holding in Victorian Goldfields project

With the current renaissance in Victorian gold exploration, Predictive Discovery looks forward to the Petratherm’s exploration activities on this project.

Predictive Discovery Ltd - Predictive Discovery retains minority holding in Victorian Gold Project
The goldfield has an estimated combined historical gold production of around 400,000 ounces from alluvial, deep lead and hard rock mining

Predictive Discovery Ltd (ASX:PDI) has confirmed its continued participation in a joint venture covering the Glenfine Gold Project in Victoria with Petratherm Limited (ASX:PTR) and Cape Clear Minerals Pty Ltd (CCM).

Predictive currently holds a 25% equity over two of the three exploration licences in the project (ELs 5534 and 5537) through an unincorporated joint venture with CCM.

Petratherm has entered into a farm-in and joint venture agreement with the two parties in which it has the right to earn an 80% equity in the entire Glenfine project by expenditure of $3 million.

If achieved, this will leave Predictive and Cape Clear Minerals jointly holding a 20% equity.

Agreement being updated

Predictive and Cape Clear Minerals are finalising an updated agreement through which the beneficial equities of the two parties in relation to the three ELs will be recognised.

The Glenfine project is in the central Victorian Goldfields, close to the world-class Ballarat (13.1 million ounces) and Berringa (1 million ounces) goldfields.

Predictive’s interest in the project dates back to 2012 and given the company’s focus on West Africa and its minority position in the joint venture with CCM, this is a legacy interest for PDI.

The company said it was pleased that this project would now be explored by a well-credentialled exploration company.

Joint venture terms

The key terms where Petratherm may acquire up to an 80% interest, with further provision to earn 100% interest, in the tenements are:

  • Condition precedent – The agreement and its obligations are subject to Petratherm being satisfied in respect of the tenements within a 21-day due diligence period;
  • Stage one - Petratherm may earn a 51% interest by spending a total of $1 million on exploration within a three-year period, of which at least $100,000 must be spent within the first 12 months;
  • Stage two - Petratherm may earn an additional 29% interest (for a total of 80% interest) by spending a further $2 million on exploration within an additional 2.5-year period;
  • Once Petratherm has earned an 80% interest the parties can elect to contribute their equity share or dilute following a standard industry formula; and
  • If Cape Clear Minerals and Predictive Discovery interest reduces to 10% or less, this will constitute a notice of withdrawal and Petratherm will acquire 100% interest in the tenements leaving Cape Clear Minerals and Predictive Discovery entitled to receive a 1% net smelter royalty in respect of all minerals produced from the JV area.

Regional location map of the Glenfine Gold Project area and gold mines.

Primary targets

The primary target for the project is ‘Stawell-style’ gold mineralisation under cover along the margins of the Glenfine Dome with margins that remain largely unexplored and will form an initial focus for future drilling.

A second target similar to conventional central Victorian or ‘Ballarat-style’ quartz reef coarse gold is also evident from drilling at the Glenfine and British Banner prospects on the east flank of the Glenfine Basalt Dome where high-grade gold intercepts remain open along trend and at depth.

Other undiscovered reef shoots are likely to be present along these mineralised structural trends requiring step out exploration.

Next steps

Glenfine offers the opportunity to rapidly confirm several ‘walk-up’ drilling targets testing both Stawell-style and Ballarat-style gold mineralisation.

Initial technical works will involve a detailed review of the drilling data including re-logging and appraisal of the extensive drill core to produce 3D structural models of the gold zones to aid future drill targeting.

Once Petratherm has completed this work, further prospect details and the ground exploration work program will be provided.

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