The Perth-based company planning an IPO for the Australian market which did not proceed with taking up the Sams Creek gold project, has now moved into the Reefton goldfield.
Condamine Resources was present at the Diggers & Dealers Forum in Kalgoorlie and was understood to be talking to fund managers and brokers about raising about $A4.75 million ($NZ5.22 M).
It’s less than a month since the proposed take up of Sams Creek with MOD Resources Ltd (ASX: MOD) and OceanaGold Corporation (TSX & ASX: OGC) lapsed and obviously Condamine has been looking at the Reefton field for some time.
Its interest in the region will be welcome, along with private company Tasman Mining striking a deal with OceanaGold on re-development of the historic Blackwater gold mine, south of Reefton.
The town of Reefton was hard hit with the mothballing last year of the Globe-Progress open cut mine at Reefton by OceanaGold.
Condamine has taken up historic mines near the town including Big River, discovered in 1880 and was mined to a depth of 600 metres to produce a recorded 136,000 ounces at a mining grade of 34.1 grams/tonne gold, before closing in 1942 with the onset of World War II.
OceanaGold reportedly undertook modern exploration and had some wide hits of medium grade and narrower intercepts of high grade gold.
Condamine was also taking up Alexander River, found in 1920, where historic production was reportedly 41,000 oz at a 26.4 g/t mined grade, before also closing due to World War II.
In the days when Macraes Mining – a forerunner of OceanaGold – took up the Reefton field and Sams Creek from Rio Tinto there was an effort to target downdip of high-grade mined shoots, but Macraes then focused on Globe-Progress.
A Canadian company took up Alexander River but appeared to have undertaken limited work.
Condamine’s third project in the field is Reefton South which takes in three historic mines – Golden Point, Morning Star and Auld Creek. OceanaGold had drilled a lode at Auld Creek in 2010 and struck wide intersections of low to medium grade gold.
Heading Condamine is Perth-based mining engineer Don Harper, and one of the directors is well known New Zealand geologist Paul Angus who has worked on several projects including a long period as exploration manager at Macraes and Reefton.
One asset for Condamine, should a major discovery be made, is that the OceanaGold mill and concentrator at Globe-Progress is now idle.