Home' Australian Resources and Investment : March 2010 Contents AUSTRALIAN RESOURCES & INVESTMENT • MARCH 2010 • 33
drillholes) has intersected significant intrusive-hosted mineralisation,
including 6m @ 3.51 g/t Au from 58m, 4m @ 6.08 g/t Au from 28m,
Compilation of past results and planning of further drilling programs is
in progress to determine whether a mineral resource can be estimated.
EL4717 is a large tenement covering the Benambra district, centred
approximately 25km southeast of Glen Wills.
EL4818 adjoins Jabiru Metals Limited’s Stockman project, which
contains the Currawong and Wilga copper-zinc-lead-silver-gold massive
ELs 4717 and 4818 were both granted on 28/01/2009 for an initial
five year term and comprise a total of 1585km2. Both tenements display
excellent potential for discovery of economic mineralisation. The area is
highly prospective for Gold, Silver, Copper, Tungsten, Molybdenum and
Talc. Appraisal of open-file stream sediment data is currently being
undertaken to determine prospective areas for follow-up exploration
programs. This review is scheduled for completion in March 2010 and
will be used as a basis for determining the principal areas for utilisation
of the Company’s exploration funds.
The compilation and assessment work for these EL’s is designed to
enhance their prospectivity and add value to the tenements.
In parallel with the above, the Company aims to attract funding
and/or investment capital from parties who may be interested in
exploring the potential in the above tenement holdings, including
Mining Lease MIN4921.
GLEN WILLS PROJECT
The Glen Wills project consists of Mining Lease MIN4921 and covers the
Glen Wills and Sunnyside goldfields. An Inferred Mineral Resource has
been previously announced for this project (refer announcement dated 2
Historically, the Glen Wills and Sunnyside goldfields produced more
than 217,000 ounces gold at an average grade of 23g/t. Significant
petrological and mineralogical work has been undertaken by Company
geological staff and external consultants on the origin of the gold
deposits at Glen Wills and Sunnyside. There is circumstantial evidence
to indicate that both goldfields are linked structurally, giving rise to the
possibility that these two provinces are, in fact, the northern and
southern limits of a 5km line of gold bearing mineralisation. Numerous
small surface workings exist along the line but due to the mountainous
topography, no exploration by way of diamond core drilling has been
The estimated costs for a meaningful program to test that
possibility will be a heavy burden on the Company’s existing cash flows.
Accordingly, a proposed drilling program, aiming to infill the zone
between the Glen Wills and Sunnyside resource areas, known as the
“Centre Country”, has been placed on hold.
In the interests of achieving efficiency in the use of the Company’s
current cash resources, the Company has decided to defer further
exploration in the Glen Wills project pending a full review of all
exploration opportunities within the Company’s extensive tenement
On 17th September 2009, the Company issued a non-renounceable
rights issue prospectus. The offer was one (1) share for every five (5)
shares held at the 28th September 2009 (the record date) at 1.2 cents
($0.012) per share.
The purpose of the offer was to provide working capital for mineral
exploration activities and corporate expenses.
On 31st October 2009 the non-renounceable pro-rata rights offer
closed oversubscribed resulting in an equity raising of $1.475 million
and the issue of 122,973,763 ordinary shares at 1.2 cents per share.
Following allotment, the total number of ordinary shares on issue is
As at 31 December 2009, the Group has $1.372 million in cash reserves,
which includes $1 million on term deposit.
The Company intends to manage its cash reserves in a manner that
aims to maximise shareholder value from exploration activities that it
undertakes during the 2010 calendar year.
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