Navarre Minerals earns 51 per cent interest in Sebastian gold project

THE BOURSE WHISPERER: Navarre Minerals (ASX: NML) has announced it has earned a 51 per cent participating interest in the Sebastian gold project, in line with the company’s farm-in agreement with Castlemaine Goldfields.

The Sebastian project comprises two exploration licences (EL4536 and EL4974) located between the regional city of Bendigo and Navarre’s 100 per cent-owned Tandarra prospect.

 

Location map of the Bendigo North group of gold projects. Source: Company announcement

 

Navarre said it has met the initial expenditure requirement of the farm-in agreement having spent $100,000 on the Sebastian project through a series of work programs.

These have included a six line Controlled Source Audio-Frequency Magneto Tellurics (CSAMT) geophysical survey across a nine kilometre corridor and follow-up testing of five geophysical targets through a 15 hole, 1,100 metre air-core drilling program.

“Navarre has notified Castlemaine, now a wholly-owned subsidiary of LionGold Corp, of its election to continue solely funding exploration work at Sebastian,” Navarre Minerals said in its ASX announcement.

“Under the farm-in arrangements with Castlemaine, Navarre is entitled to increase its interest in the project to 75 per cent by spending a further $300,000 over the next four years.”

Navarre indicated it had also reached its minimum expenditure requirement of $100,000 on Castlemaine’s Raydarra gold project within the first twelve months after commencement of another farm-in agreement for that particular project.

Under the terms of that agreement Navarre can earn a 51 per cent interest in the Raydarra project by spending $300,000 over a two year period.

It then has an option to earn an additional 24 per cent interest by spending a further $600,000 over three subsequent years.

“Navarre’s farm-in arrangements with Castlemaine in respect of the Sebastian and Raydarra gold projects fit Navarre’s strategy of increasing its land position along the prospective regional Whitelaw Fault, which is believed to be a major control on gold accumulations in the Bendigo Goldfield,” Navarre said.