Melbourne-based New Age Exploration Ltd (ASX: NAE) has its Otago Schists gold prospect under review.
The company had a major management change a month ago when Gary Fietz stepped down as managing director and Neil Hutchison, Joshua Wellisch and Stephen Layton were appointed directors.
A week ago New Age announced a review of the company’s strategic direction that includes the potential to rationalise the current project portfolio and reduce costs.
At the same time fresh capital was being sought and this included “significant contributions” from incoming directors.
Though the Lochinvar coal project in the UK was not seen as a key focus under this new strategy, the board will seek to monetise this asset.
“Further detailed evaluation of the Otago South gold project is required to determine the next course of action,” the report said.
This hopefully means New Age will step up exploration on the New Zealand prospect, which the previous management saw as a potential clone target to the Macraes gold mining operations further north for OceanaGold Corporation (TSX & ASX: OGC).
NAE’s most advanced project is the Redmoor tin-tungsten project in the UK which was described as providing ongoing exploration that was “exciting.”
New directors Joshua Wellisch and Neil Hutchison have been appointed to undertake a strategic review on the company’s assets.
There would be not many options for the essentially grass roots Otago South prospect, given that the international perception for New Zealand as a place to explore under the current Government are poor.
Perhaps the best option for NAE would be to talk to OceanaGold which has the cash to explore and has an intimate knowledge of the region’s geology.