Gold: Administrators have a plan to re-list failed gold miner Gascoyne
Gascoyne Resources (ASX:GCY) could resume trading on the ASX after administrators recommended that unsecured creditors approve a deed of company arrangement (DOCA) as part of a broader recapitalisation and re-listing plan.
Gascoyne, which only poured first gold from the Dalgaranga mine in mid-2018, struggled with lower-than-expected grades before going into administration in June the following year.
The recommendation comes after the company achieved a significant operational turnaround at the flagship mine, reaching a fifth consecutive month of producing more than 6,000 ounces of gold.
This reflects the higher grades accessed from the Gilbey’s Main Zone and was made possible by the administrators’ decision to reinvest about $10m of cash flow into an accelerated cutback of the western wall of the main Gilbey’s pit from October 2019.
Recapitalisation is currently expected to involve an entitlement offer and placement of new shares to raise between $70m and $80m. This will be used to help repay secured debt owed to the current funding banks in full.
Gascoyne’s mining contractor, NRW, has also agreed to restructure its secured debt subject to the successful completion of the recapitalisation plan.
Bulletin Resources’ (ASX:BNR) drilling has confirmed that gold mineralisation from Apollo Consolidated’s (ASX:AOP) Rebecca gold deposit extends at least 600m along strike into its neighbouring Lake Rebecca gold project.
Wide spaced reverse circulation drilling intersected 3m at 1.44 grams per tonne (g/t) gold from 72m, 6m at 1.24g/t gold from 93m and 18m at 0.58g/t gold from 57m.
The company added that the Rebecca gold mineralisation trend remains open to the northwest with potential to increase the 600m strike extent.
“Bulletin is extremely energised by the results of this initial explorative drill program, which confirms our belief that our neighbour’s gold trend does in fact extend well into Bulletin’s ground,” chairman Paul Poli said.
“The identification of another separate gold trend reinforces our view that the Lake Rebecca gold project does offer an excellent opportunity to host gold mineralisation in addition to the Rebecca gold trend.”
Meanwhile, Magmatic Resources (ASX:MAG) has kicked off a drilling program targeting the Lady Ilse and Boda North gold-copper porphyry targets at its Wellington North project in NSW’s Lachlan Fold Belt.
The company is drilling 14 holes at Lady Ilse to test zones of strong chargeability, conductivity anomalism and the interpreted core of the porphyry system.
Once this program is completed, it will then drill four holes at Boda North, which is along strike from Alkane Resources’ (ASX:ALK) Boda gold-copper porphyry discovery.
Kairos Minerals (ASX:KAI) is doubling the footprint of its Croydon gold project in the Pilbara with its application for new exploration tenements that are adjacent to existing granted exploration licences.
The new applications cover an area of 389.8sqkm and are prospective for both intrusive-related (Hemi-style) and structurally hosted gold discoveries.
“Evidence from the recent Hemi gold discovery suggests that the margins of these large intrusive features where they intrude granites is now highly prospective for new gold discoveries,” executive chairman Terry Topping said.
“The land package also includes prospective granite-greenstone rock units that are prospective for more conventional structurally-hosted gold deposits.”