BLACK OAK MINERALS LTD • Sale of non‐core Marda tenements at Battler and British Hill for $4 million cash
• Commencement of exploration program aimed at expanding Marda gold resources
• Funds becoming available for exploration of Manuka and Mt Boppy targets in NSW
Black Oak Minerals Ltd (ASX: BOK) has expedited the funding of its exploration programs through signing an agreement to divest non‐core tenements relating to the Marda Project in Western Australia. The agreement will deliver $4 million cash over the next 18‐24 months, with $125,000 received to date and including a further $1.375 million due by 1 December 2015.
BOK has been positioning itself to fast track drilling of key gold targets in the Marda region of WA with a first phase RAB drilling program having commenced this week. A significant number of gold geochemical anomalies exist, generated from detailed targeting undertaken by the BOK team over the last few years.
BOK has been focussed on ways to supplement cash reserves to provide funds for investment in exploration. As a result of the ongoing divestment of non‐core tenure in the Marda district, BOK received interest in the acquisition of its southern‐most tenements in the Marda Project, known as Battler and British Hill.
Whilst included as part of the Marda Project, their distance from the proposed Marda Central treatment facility relegated the Battler and British Hill resources to high cost ounces, making these tenements economically marginal to the overall Marda development project (Figure 1).
BOK has now entered into an agreement with IMD Gold Mines Ltd ("IMD") for IMD to acquire 11 tenements across the Battler, British Hill and Parker Dome areas. This includes three mining leases at Battler and one at British Hill. These tenements are currently reported to contain 147koz Au mineral resources and 24koz Au ore reserves as shown in Table 1.
The sale agreement is structured to deliver BOK a total of $4 million cash over the next 18‐24 months. Payments are as follows:
• $125,000 paid to date on agreement signing
• $125,000 due on 13 October 2015
• $1.25 million due on 1 December 2015
• $1.5 million due 6 months after receipt by IMD of approval to mine
• $0.5 million due six months following the previous payment
• $0.5 million due six months following the previous payment
ASX: BOK T: +61 7 3236 2511 E: admin@blackoakminerals.com.au W: www.blackoakminerals.com.au
GPO Box 519 Brisbane QLD 4001
lack Oak Minerals Limited
ASX Announcement - 18 September 2015
Completion of the transaction will be upon payment of the $1.25 million due on 1 D ecember 2015.
Prior to making the payment on 1 December 2015, IMD has an option to defer fu ture payments with the impact of increasing the price from $4 million to $5.05 million cash plus a trailing 2% Net Smelter Royalty.
If this option is invoked, completion of the transaction will be delayed until no l ater than 30 September
2016 upon payment of $2 million.
The remaining $3 million cash consideration wil l be paid quarterly from
the date the assets enter steady state production.
In the recent refinancing negotiations with its partner TrailStone, BOK and TrailS tone agreed that funds from asset sales such as this would be isolated for the specific purpose of investme nt in exploration activity. This provides BOK with an opportunity to fast track exploration initially focussing o n Marda and in the near
future its NSW Mt Boppy and Manuka projects.
King Brown
Red Legs, Fiddleback
Golden Orb
Marda Central
Deposits
Battler
British Hill
BOK Tenure post 2015 divestmen ts
Proposed open pit (Gold)
Figure 1: BOK's Marda gold project showing relative deposit locat ions
Marda Exploration Program
BOK currently holds a tenement package covering an area of approximately 1,096 km2 in the Marda district of the Eastern Goldfields in WA. In keeping with its focus BOK has significantly reduced this package in recent months from an initial holding of around 1,700km2 to a core area with t he highest potential for
adding additional gold resources within haulage distance of a development project at Marda Central.
Throughout a period of restricted exploration funding, BOK (and previously SXG ) has been carrying out
ongoing auger geochemical sampling and geological reconnaissance programs in or der to provide a pipeline
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Black Oak Minerals Limited ASX Announcement - 18 September 2015
of highly prospective targets. Numerous prospects on the Evanston Shear along with areas at King Brown, Windarling and Golden Orb now require RAB drill testing (Figure 2).
A first phase RAB drilling program of 5000m has now commenced which focuses on prospects located on the highly prospective and under explored Evanston Shear. Four prospect areas, namely White Pointer, Reef, Lancelot and Thresher are being tested which contain auger gold‐in soil geochemical anomalies between 40ppb to >100ppb Au over strike lengths ranging from 500m to >1,500m. The program is expected to be completed within the next four weeks, including receipt of assay results.
Subject to the success of the first phase drilling, the next areas most likely to be targeted include King
Brown and the Rattle trend at Golden Orb.
Figure 2: BOK's Marda gold deposits and Evanston Shear prospective targets
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lack Oak Minerals Limited
ASX Announcement - 18 September 2015
Table 1 - Mineral Resources and Ore Reserves for the Marda Project as reported at 30 June 2015
The information in this announcement that
relates to exploration results, min eral resources and ore
reserves at the Marda project is extracted from previous market announcements as listed below.
Announcement - "Quarterly Activities Report to 30 June 2015" released to
available to view on www.asx.com.au.
ASX on 31 July 2015;
Announcement - "2015 Resources and Reserves Update" released to ASX on 4 A ugust 2015; available to
view on www.asx.com.au.
The Company confirms that is not aware of
any new information or data tha t materially affects the
information included in the relevant market announcement and all material as sumptions and technical
parameters
underpinning the estimates of mineral resources and ore reserves
in the relevant market
announcements shown above continue to apply and have not materially changed
For further information contact:
David Kinsman, Chief Financial Officer and Company Secretary, Black Oak Minerals L imited
Telephone: +61 7 32362511, email admin@blackoakminerals.com.au
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