Red Bore Project
Copper – Gold
The Red Bore Project is a two square kilometre granted mining licence ML 52/597 located in the Doolgunna Region of the Murchison mineral field approximately 900km NNE of Perth in Western Australia. The DeGrussa copper-gold mine, owned and operated by Sandfire Resources NL, is less than 1 kilometre from the Red Bore licence.
Ora Gold (currently holding a 90% interest in the Project) entered a Joint Venture in April 2010 with the tenement holder, Mr Bill Richmond, to earn a 60% equity interest by declaring a JORC Resource before October 2012. Ora Gold’s exploration between 2010 and early 2012 led to an Indicated Resource, classified under the 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (2004 JORC Code), being announced on 04 May 2012.
Red Bore Classified Resource at a 1% Cu cut-off (May 2012)
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Richmond disputed Ora Gold’s subsequent earn-in notice claiming the 60% interest. The Supreme Court of WA found in favour of Ora Gold Limited in late October 2013, awarding the 60% interest plus costs. On 21 March 2014 Ora Gold and Richmond settled all outstanding issues. Ora Gold Limited moved to 90% interest in Red Bore and delivered to Richmond a 10% interest in the Curara Well tenement north of Red Bore. Mr Richmond now has 10% free carried interest in both projects through to a decision to mine.
Ora Gold Limited recommenced active exploration at Red Bore in April 2014. An initial diamond drill program tested a theory that the Red Bore gossan represented a mineralised sulphide shoot plunging to the south-west. Two mineralised copper sulphide and magnetite occurrences, reported in the ASX announcements of 16 May, 14 July, 18 August and 08 September 2014, were encountered. They included a spectacular shallow intercept of 7.05m of massive chalcopyrite grading 28.4% Cu, 1.3 gpt Au, 32.2 gpt Ag from 30m downhole.
Follow-up work was not able to demonstrate that these intercepts were part of a commercial orebody, but nor was it able to disprove the possible existence of a deposit. In July 2017 our Joint Venture partner pre-empted a deal that had been struck with our neighbour who wished to explore using their extensive local geological and structural knowledge.
Our Joint Venture partner has since spent over $1.7 million on further exploration, and continues to explore, but without reporting the discovery of any new mineralisation so far. Such additional exploration is at no cost to Ora Gold, which retains a 90% interest until such time as our partner defined a JORC 2012 compliant resource of at least 30,000 tonnes of contained copper or equivalent, which would result in Ora Gold diluting to a 15% interest, free-carried to production.