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The cashed up company has signed two earn-in joint venture agreements with unlisted company Cygnus Gold over 3400sq.km of the Yilgarn Craton.
The Wadderin project surrounds Explaurum’s 700,000 ounce Tampia gold project outside Narembeen, while the Lake Grace project to the southeast is east of Katanning in Western Australia’s Wheatbelt.
Gold Road said the two projects had seen little modern exploration due to low resolution geophysical data, widespread soil and laterite cover, and a “prevailing perception that high-grade metamorphic terranes do not offer the same prospectivity as other Yilgarn greenstone belts”.
At Wadderin, Gold Road can earn 51% within 30 months by spending $1.6 million, and can reach 75% by spending another $900,000.
The company can earn 51% of Lake Grace by spending $700,000 and can move to 75% by spending a further $500,000.
The minimum expenditure required before Gold Road can withdraw is $900,000 at Wadderin and $400,000 at Lake Grace.
Gold Road executive director, exploration and growth Justin Osborne said the company was looking to acquire greenfield projects with large landholdings to complement its Yamarna ground, where it holds 6000sq.km.
“The practical and well-considered application of new concepts and technologies in what we consider highly prospective gold districts, in the search for new multimillion ounce discoveries, is the strength of Gold Road,” he said.
“With the significant decline in Australian greenfields exploration over the last 10 years, Gold Road is looking to fill the void and leverage its proven exploration skills and experience which led to the discovery of the 6.2 million ounce Gruyere gold deposit.”
Osborne said the Lake Grace and Wadderin projects met Gold Road’s strict investment criteria.
“We are very excited by the cutting-edge work that Cygnus have conducted to identify historically overlooked areas of greenstone in Western Australia’s prolific Yilgarn Craton,” he said.
“We believe this is a potentially new gold district in an area of Western Australia which has been neglected for many years, and is an area that offers tremendous upside potential.”
Gold Road has also agreed to invest $750,000 in Cygnus, as part of its upcoming initial public offering.
Cygnus, which is also backed by Resource Capital Fund, is based in Perth and holds other tenements around Lake Grace and Wadderin.
The company was formed last year and is led by geologist James Merrillees as CEO and Ramelius Resources director Michael Bohm as chairman.
Cygnus is hoping to list on the ASX by the end of the year.
Gold Road shares gained half a cent to 73c.
