A new document put out yesterday by MOD Resources Ltd (ASX: MOD) reveals that the Sams Creek gold project near Takaka at the top of the South Island is still in mothballs and seeking a new owner.
MOD Resources put Sams Creek on ice almost three years ago when cash was tight for the Perth-based explorer and it was sharpening its focus on copper-silver discoveries in the Kalahari Copper Belt of Botswana.
The discovery work in Botswana has been paying dividends for MOD which has just released a prospectus to gain a dual listing on the London bourse. The company’s share price has been improving since a capital reconstruction and last week it bought out its 30% partner in the key T3 discovery in the Kalahari, Metal Tiger plc, though that London listed company is still a partner on other permits.
MOD’s prospectus said Sams Creek, 100 kilometres north of the Reefton goldfield is owned 80% by subsidiary Sams Creek, in partnership with original owner OceanaGold Corporation (TSX & ASX: OGC).
MOD had a share sale agreement with unlisted Perth company Condamine Resources Ltd but in July this year but this was terminated in July after Condamine failed to meet terms under an acceptable time frame.
Condamine, which has been seeking listing on the ASX, subsequently struck a deal to acquire some gold permits near Reefton, where OceanaGold ceased mining last year.
MOD’s prospectus said that it commits “very little expenditure to the Sams Creek project, which accounts for less than 1% of the company’s total capital expenditure.
“MOD will continue to minimise expenditure requirements whilst at the same time ensuring compliance with the Sams Creek permits.”
Work carried out by MOD had lifted the resource at Sams Creek to about one million ounces, making it perhaps the largest undeveloped resource in New Zealand.