Georgetown Goldfields (100% CUU)
The Georgetown Goldfields (or Etheridge Goldfields) were discovered in 1869 when rich deposits of alluvial and reef gold started to be extracted in the area around Georgetown. The gold reefs are associated with quartz reefs that range from 0.5 to 14 metres in width and there are literally hundreds of shallow workings within Callabonna’s EPM 18699.
There have been numerous attempts through the 1970’s and 1980’s to develop shallow high grade gold operations within the Etheridge goldfields but generally these have been thwarted by the refractory nature of the gold in this area which is associated with and often within pyrite and other base metals sulphides. With the recent development of a market for gold rich sulphide concentrate and buyers in China willing to pay good prices for such material the potential for an economic gold operation targeting this sulphide rich gold mineralisation has changed. Callabonna will investigate (with a joint venture partner) the viability of producing a sulphide concentrate via a floatation cell and selling the concentrate into an established long-term off-take agreement.
In September 2011 Callabonna announced that it has entered into a Farm-in Agreement with Planet Metals Limited ('Planet') covering Callabonna’s three gold exploration tenements in the Georgetown district.
The key terms of the farm-in agreement are:
- Planet can earn a 51% interest in all three tenements (Hatch EPM 18181, Oak River EPM 17945 & Central EPMA 18699) by spending $750,000 in total over a period of 2 years and 10 months. Planet’s interest will cover all minerals for EPM 18181 and EPMA 18699 whereas for EPM 17945, Planet’s interest covers only gold, precious and base metals, but excluding rare earths and uranium.
- A minimum of $150,000 must be spent on exploration within 10 months of signing the agreement, including a 1,000 metre drill program. Planet has the option to withdraw from the agreement after this minimum expenditure requirement has been met.
- After satisfying this minimum expenditure requirement, Planet may elect to earn-in to the tenements by spending $600,000 within a further 2 years, of which a minimum $200,000 must be spent in the first year.
Planet has advised that it intends to focus its immediate exploration and drill program on the Delaney Gold Project (within Hatch tenement EPM 18181). Some geochemical sampling and mapping is also proposed within the Oak River tenement.
