Australasia Gold to start exploring in Otago
17 January 2006
Australian mining company Australasia Gold said today it plans to start exploration on its Wetherstones project, near Otago, in February.
Australasia Gold's managing director Trevor Ireland said the company, which will list on the Australian Stock Exchange on Wednesday, wanted to target known mineralisation with its maiden drilling programme.
"From our research, we believe that previous efforts to exploit deposits at Wetherstones terminated due to limitations of the technology of the times rather than exhaustion of the gold lode," he said.
Mr Ireland said the company would spend more than $A300,000 ($NZ327,332) on the initial drilling programme which would test extensions of known high grade gold mineralisation at Wetherstones.
A development feasibility study would follow the drilling programme.
The Adelaide-based company raised $A3 million in its initial public offering.
Australasia Gold is also ready to prepare a feasibility study on the Glencoe gold deposit in the Pine Creek region of the Northern Territory.
New ASX Listing Focusing on NZ Drilling
Australasia Gold Ltd joins the ASX lists on Wednesday with plans to commence exploration drilling in February on its promising New Zealand prospect.
“We have decided to target known mineralisation with our maiden drilling program,” Australasia Gold’s Managing Director, Trevor Ireland, said yesterday. “Our first drilling is therefore planned to be under way on our 100% owned Wetherstones project, near Otago, by the end of next month.
“From our research, we believe that previous efforts to exploit deposits at Wetherstones terminated due to limitations of the technology of the times rather than exhaustion of the gold lode,” he said.
“We will be testing extensions of known high grade gold mineralisation at Wetherstones with more than $300,000 to be outlaid on the initial drilling program. The drilling program is expected to be followed by a development feasibility study on the prospect.”
The Wetherstones gold project is located in a region of New Zealand’s South Island with a rich history of alluvial gold production.
The Adelaide-based company joins the ASX lists on Wednesday after closing its $3 million IPO oversubscribed.
As well as the NZ gold project, Australasia Gold’s interests include the Glencoe gold deposit in the Pine Creek region of the Northern Territory which is ready for a feasibility study leading to potential development and early cash flow.
The Glencoe deposit contains a JORC-compliant resource of 90,000 ounces of gold. Production from the NT deposit could commence within 12 months of the Company’s ASX listing, providing income to supplement exploration funds raised from the IPO
It also holds interests in greenfields exploration areas of high potential, including the Lachlan project near Orange in NSW – an area that has yielded a number of significant gold discoveries.
Mr Ireland said Australasia Gold would also be keeping an eye on any acquisitions that could add to the company’s future growth – especially any attractive development opportunities that may be identified.
Mr Ireland - a former Exploration Manager at North Flinders Mines and Normandy Mining - is the geologist credited with discovering much of the world class Granites and Callie gold deposits now operated by Newmont Mining in the Tanami Desert region of the Northern Territory.
He is joined on the Australasia Gold board by Directors with extensive minerals industry experience, namely former Homestake Gold of Australia Ltd Managing Director, John Roberts as Chairman, and Messrs Norton Jackson and Mick Billing.
- 17 Jan 2006