Great Boulder Resources (ASX:GBR) delivers $137M NPV in Ironbark scoping study, paving way for first gold production at Side Well

Following the release of a detailed Scoping Study on the Ironbark deposit, part of the broader Side Well Gold Project near Meekatharra in Western Australia, investor interest has intensified around Great Boulder Resources (ASX:GBR) development strategy.

The study confirms the commercial potential of Ironbark as a standalone high-grade open pit operation and demonstrates strong economics that support early production and further resource development.

Managing Director Andrew Paterson outlines the key outcomes from the study, the path toward development approvals, and how the Company is positioning itself to transition from explorer to producer.

What are the key takeaways from the Ironbark Scoping Study and how does this shape GBR’s development strategy?

The Scoping Study has delivered a strong result, confirming that Ironbark is a viable standalone development opportunity.

Based on a spot gold price of $5,064 per ounce, the project delivers a pre-tax NPV8 of approximately $137 million and an internal rate of return of 152 percent.

The study is based on the November 2023 Mineral Resource Estimate of 100,000 ounces at an average grade of 3.3 grams per tonne gold.

“The Scoping Study generates a production target of approximately 79,000 ounces over two stages, with a life-of-mine plan spanning 31 months plus 7 months of processing from stockpiled ore.”

The mine plan outlines two stages of open pit mining, producing approximately 79,000 ounces over a 31-month operation, followed by seven months of stockpiled ore processing.

Ironbark is one deposit within the larger Side Well Project, which holds a total resource of 668,000 ounces at 2.8 grams per tonne, and an additional exploration target of up to 465,000 ounces.

Recent high-grade intercepts, such as 8 metres at 8.57 grams per tonne gold from 92 metres depth, lie outside the current study and suggest room for resource growth.

How much confidence can investors place in the production target, given that part of the resource is Inferred?

The production target of 1.26 million tonnes at 1.95 grams per tonne gold is underpinned by 89 percent Indicated Mineral Resources, providing a high level of geological confidence in the production schedule and the resulting financial projections.

The remaining 11 percent consists of Inferred Resources, which carry lower geological confidence but are limited in scope, with approximately 7,470 ounces scheduled for mining in Stage 1 and 1,225 ounces in Stage 2.

As this material is located close to surface, it is already earmarked for additional drilling to upgrade its classification to Indicated prior to mining, which will help de-risk the production schedule and enhance confidence in early-stage gold output.

What are the next steps before mining can commence at Ironbark?

To move the project forward, the first major milestone is the grant of Mining Lease M51/911.

Lodged in June 2023, this lease covers the Ironbark deposit and associated infrastructure area.

Great Boulder is progressing negotiations with the Yugunga-Nya Native Title Aboriginal Corporation, with a view to having the Mining Agreement ratified at their AGM in November 2025.

Once this is achieved, the Department of Energy, Mines, Industry Regulation and Safety can finalise the lease.

In parallel, the Company is conducting hydrogeological assessments, diamond drilling for geotechnical and metallurgical data, and environmental studies including waste rock and tailings characterisation.

These programs are expected to conclude by year-end.

“We are now progressing the various field studies required for mining approvals and processing. The hydrogeology work is underway, and we aim to have everything completed by the end of this year in order to lodge a mining approval application as soon as the Mining Lease is granted.”

The Company intends to lodge a mining application immediately after the lease is granted, with government assessment typically taking 6 to 9 months and this positions Great Boulder for a development decision in the fourth quarter of 2026.

What processing options are under consideration and how will GBR secure a processing agreement?

Ironbark’s location provides several processing options within trucking distance.

These include Westgold Resources 1.8 million tonne per annum Bluebird plant (25 km from Ironbark), Meeka Metals Andy Well plant with a 600,000 tonne per annum capacity (40 km north), and Monument Mining’s Burnakura plant (50 km south), which has an existing capacity of 260,000 tonnes and the potential for expansion to 750,000 tonnes.

“This is a fantastic result. We selected Ironbark as the subject of the first economic study within our Side Well Project because we can mine the deposit without interfering with ongoing work at the other deposits and prospects.”

Great Boulder has a Memorandum of Understanding in place with Monument Mining for potential toll treatment access.

The Scoping Study uses a $50 per tonne processing cost, informed by third-party toll milling benchmarks in the Eastern Goldfields.

Metallurgical recoveries of 95 percent for oxide and transitional material and 92 percent for fresh ore were supported by test work completed by Independent Metallurgical Operations in 2023. Further metallurgical studies are planned once a commercial agreement is secured.

How does GBR intend to fund the capital requirements and what is the outlook for securing that funding?

The Scoping Study estimates an initial capital requirement of $3.1 million to establish Stage 1 infrastructure, which includes haul road construction, ROM pad development and mobilisation.

Total mining and processing costs over the life of mine are estimated at approximately $213 million, with gross revenue from gold sales forecast at $298 million based on a $4,000 per ounce gold price.

Following completion of its recent placement, Great Boulder holds approximately $15 million in cash.

While no specific funding mechanism has been committed to in the Scoping Study, the Company is in a strong financial position to advance the project through to development readiness.

Additional funding may be considered via equity, debt or partnerships once mining approvals and processing arrangements are in place.

“In the longer term we anticipate this is just the beginning at Side Well, and we will be outlining a much larger, long-life mining opportunity with the work planned in the next 12 to 18 months.”

Advancing toward development with confidence

The Ironbark Scoping Study confirms a technically and economically viable open pit operation with strong returns and a manageable capital profile.

As Great Boulder Resources progresses through regulatory approvals, completes further drilling, and refines commercial agreements, the Company is focused on laying a solid foundation for production at Ironbark while unlocking broader value across the Side Well Gold Project.

Managing Director Andrew Paterson emphasises that Ironbark marks a starting point for a much larger development story, driven by strong geology, proven gold mineralisation and disciplined execution.

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