St Barbara has commenced reverse circulation (RC) drilling at the Pinjin South earn-in and joint venture (JV).
Pinjin South is located in the eastern Yilgarn area of Western Australia. Exploration at the site is operated and funded by Plowden Resources, St Barbara’s JV partner for the project.
Under the JV agreement, Plowden can solely fund $15.6 million or more in exploration expenditure over a maximum of six years to earn up to a 70 per cent interest in the Pinjin South JV.
The four earn-in periods of the agreement include:
- 15 per cent participating interest by funding $1.6 million within 24 months
- 25 per cent participating Interest by funding $2.6 million within 36 months
- 50 per cent participating interest by funding $5.6 million within 48 months
- 70 per cent participating interest by funding $15.6 million within 72 months.
Additionally, a minimum exploration spend of $2.6 million is required within the first 36 month earn-in period. The JV agreement commenced in late December 2021.
The new drilling program is expected to comprise of up to 19 RC holes for 3000m. The program will take approximately two weeks to complete.
“The initial technical work completed by Plowden has further developed the regional geological and structural understanding of the project,” St Barbara managing director and chief executive officer Andrew Strelein said.
“This work in combination with boots on ground technical mapping, auger drilling, induced polarisation surveys, gold and multi-element analysis has led to the identification of over 21 gold, nickel and lithium targets. We look forward to seeing the results of the early stage drilling of six of the highest priority drill targets.”
Preliminary assay results from the program are expected in the second quarter of the 2024 financial year.
Earlier in the year, St Barbara sold its Leonora assets to Genesis Minerals.