648dd3a7-ecf9-4f90-8c58-bd7cff3ed816.pdf
Joint Venture expands GME's North-Eastern Goldfields Gold Assets.
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Increased landholding in highly prospective and favourably located North Eastern Goldfields.
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Contains JORC2012 defined high-grade gold resource.
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Contains significant historical gold and copper mining camp.
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Numerous historical high-grade gold and copper drill hole intercepts.
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Natural fit with GME's portfolio and in-house experience & capabilities.
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GME well funded to pursue gold strategy.
GME Resources Ltd (GME, ASX:GME) is pleased to announce they have executed a binding term sheet for the purpose of entering into a Joint Venture Agreement with Zeta Resources Ltd (Zeta, ASX:ZER) on the Murrin Murrin Project located within the highly prospective North-Eastern Goldfields of Western Australia. A binding Terms Sheet covering the agreement has been signed between Golden Cliffs NL (GCNL) a 100% owned subsidiary of GME and Kumarina Resources Pty Ltd (KMR) a 100% own subsidiary of Zeta.
The key terms of the agreement include:
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GCNL will fund $1.5 million dollars in exploration and development costs to earn a 50
% interest in the Murrin Murrin Project within 24 months of date of agreement.
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GCNL can elect to withdraw from the Earn In at any time, provided it has spent at least
$250,000 on exploration and development.
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On completion of the Earn In, both GCNL and KMR agree to enter into a 50:50 Joint Venture to further develop the project.
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GCNL will be Manager of the Project and will manage the Joint Venture in accordance with the Joint Venture Committee directions.
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On and from the Commencement of the Joint Venture the Parties will contribute to expenditure on the Project in proportion to their joint venture interest. A dilution formula applies if either party does not contribute.
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Where a Party's Interest dilutes to below 10%, that Party's interest will revert to a 2% Net Smelter Royalty.
Managing Director Jamie Sullivan states "The Murrin Murrin Project is an excellent fit with our portfolio and recent in-house experience & capabilities of promptly monetising gold assets in the North-Eastern Goldfields".
About the Murrin Murrin Project
The project comprises 16 largely contiguous tenements covering 50.3 km2within the North- eastern Goldfields of WA, a district of excellent infrastructure and favourable gold, nickel and base metal prospectivity (Table 1). The tenure lies just north of GME's Mount Kilkenny and abuts its Hepi Nickel Laterite Projects. Dacian Gold's Mt Morgans Project, St Barbara's Sons of Gwalia and Goldfields' Granny Smith gold plants all lie within a 30 to 55 km radius of the Murrin Murrin Project area (Figure 1)
Sporadic gold and base metal exploration and mining has been undertaken at Murrin Murrin since the late 1800's. Historical underground production from the Murrin Murrin mining centre includes 259Kt @ 13.8 g/t Au (115,628 oz) and 1,949t @ 16.5% Cu concentrate. Relatively recent gold mining was completed by Dominion Mining in 1995 when 126,531 tonnes at an average recovered grade of 3.5 g/t for 14,157 ounces was extracted from two shallow pits at the Malcolm and Challenger deposits. (KMR prospectus, 2011).
A JORC 2012 indicated Mineral Resources Estimate of 547Kt @ 3.12 g/t Au for 54,875 ounces has been delineated immediately beneath and along strike of the Malcolm- Challenger shallow open cut pits (Refer - Zeta ASX announcement, 22ndJanuary 2014). Drilling by KMR to define this resource returned the following high-grade gold intercepts (Refer - KMR ASX announcement 17thDecember 2012 & Zeta June 2013 ASX Quarterly Activity Report):
Drill Hole ID Down hole Drill Intercept
12MMRC072 13 metres @ 12.6 g/t Au from 52 metres 12MMRC068 7 metres @ 12.7g/t Au from 63 metres 12MMRC063 21 metres @ 4.2g/t Au from 39 metres 12MMRC064 13 metres @ 4.2g/t Au from 13 metres 13MMRC006 3 metres @ 33.23 g/t Au from 100 metres
While outside of the Malcolm-Challenger resource area has not been subjected to a modern concerted exploration effort, historical exploration has defined numerous gold and base metal prospects/targets. Highlights from historical drilling include the following (Refer - Indpendent Geologist Report KMR Prospectus 2011) and (Figure 2 below):
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Gold Prospect
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Selected Drill Intersections
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Princess Alix
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10m at 4.38 g/t Au
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Bound to Win
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7m at 1.34 g/t Au
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Vindicator
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8m at 1.44 g/t Au
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Avenger
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8m at 1.36 g/t Au
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Eastern Gabbro
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5m at 2.55 g/t Au 7m at 4.07 g/t Au
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Alix Junior
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3m at 4.22 g/t Au
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Elbe
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8m at 2.77 g/t Au 4m at 4.38 g/t Au
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Hill End
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4m at 8.33 g/t Au 8m at 4.9 g/t Au 12m at 4.08 g/t Au 8m at 10.5 g/t Au
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Aurther Rymer
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3m at 4.75 g/t Au 2m at 10.09 g/t Au
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Base Metal Prospect
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Selected Drill Intersections
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Nangaroo
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6m at 14.7% Cu, 9.5% Zn & 18.5 g/t Ag
3.9m at 11.2% Cu, 3.5% Zn & 0.5 g/t Ag
9.7m at 6.0% Cu, 0.01% Zn & 51.0 g/t Ag
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About GME Resources
GME Resources is a Perth based mining and exploration company with substantial landholding in the prospective North-Eastern Goldfields of WA. GME's landholding contains a large laterite nickel resource inventory, the current producing Devon gold mine and numerous prospects/targets. The company's focus is largely on realising value from both its gold and nickel assets and is well placed to pursue this through cashflow currently being generated from its Devon Gold Mine.
Outside of the Devon Project GME also has advanced gold exploration targets at its Abednego (Sonex & Federation Prospects), Hawks Nest and Laverton Downs Projects.
JAMIE SULLIVAN MANAGING DIRECTOR 14 July 2016
Competent Person Statement The information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Messrs Mark Gunther & Mr Tony Standish who are members of The Australasian Institute of Geoscientists. Messrs Gunther & Standish are Consultants with Eureka Geological Services. Messrs Gunther & Standish have sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Gunther and Mr Standish consent to the inclusion in the report of the matters based on information provided in the form and context in which it appears.
Where a reference is made to the Mineral Resource Estimate for the Murrin Murrin Project advised to ASX on 22ndJanuary 2014 by Zeta Resources Limited, the Company confirms that it is not aware of any new information or data that materially affects the information included in that announcement and all the material assumption and technical parameters underpinning the resource estimate with that announcement continue to apply and have not materially changed.
Figure 1 Murrin Murrin Project Location Plan