Boadicea eyes potential $50 million payday from IGO’s exploration of Fraser Range tenements

Boadicea Resources Ltd (ASX:BOA) shareholders are looking forward to a potential $50 million payday from IGO Ltd’s exploration of nine of Boadicea’s Fraser Range tenements in Western Australia.

Proactive Investors reports the $50 million (plus 0.75% net smelter return royalty) is payable by IGO if it discovers any JORC resource within the remaining ~4½ years, without the need for evidence of it being mineable, on any of the nine Fraser Range tenements.

The prospect of receiving this $50 million is enhanced by IGO’s encouraging exploration of intrusions of Boadicea’s Symons Hill licence adjacent to the Nova-Bollinger mine and the discovery of an ‘eye’ feature on one of Boadicea’s Transline tenements which are located near Legend Mining’s Mawson discovery.

Boadicea’s next share price catalyst could also come from the exploration on its two other Fraser Range tenements, exploration on the Koongulla tenements in the Paterson Province that were added last financial year, or exploration on the North Queensland tenements that were also added last year.

Koongulla tenements

Boadicea is enthusiastic about the potential reward that may come from the exploration of the company’s Paterson Province Koongulla tenements in Western Australia where a Telfer look-a-like dome feature has been identified.

This feature will be drilled by the company after preliminary, methodical, and systematic exploration to assist with drill hole targeting.

The Koongulla dome exploration has the potential to be a company-maker as the Paterson Province is generally considered to be one of Australia’s hottest exploration grounds for copper-gold deposits, with major discoveries already achieved in this region.

It is worth noting that many Paterson Province discoveries have originated from dome features.

North Queensland Clarke Reward Project

The North Queensland Clarke Reward Project, which was recently granted, may also prove to be a significant prospect for intrusive-related gold deposits.

This prospect will be drill tested, perhaps in Q4 2021, following the company’s usual methodical and systematic exploration to enhance drill hole targeting, thereby most effectively committing the drilling expenditure.

Improved liquidity

As part of Boadicea’s strategy to increase its overall attractiveness, the company has doubled its shareholders to more than 800 during the past 12 months and increased its cash from a strongly supported capital raising, to enable active exploration.

The company’s now improved liquidity allows on-market buying and selling to attract new investors, including the potential to attract small funds and some institutional investors.

Over the past financial year, Boadicea has also achieved an increased market capitalisation despite paying shareholders 8 cents a share dividend.

With increasing on-ground activity and resulting news flow, Boadicea’s directors expect to see the company share price improve, subject of course to overall market volatility in these somewhat uncertain times.