ASX move to fund Rockhampton gold mine
A MINING company is raising funds to finance gold mining with a site earmarked in the Rockhampton region.
Traprock Mining Limited has its eyes on the region with its flagship Mount Chalmers project, with the company looking at the site as being the first gold and copper mine it establishes.
It is the third gold exploration/mining site in the region companies are actively working at - Mt Morgan gold mine and Zhong Hao mining's exploration of the Cawarral area.
Traprock has announced its Initial Public Offering (IPO) on the Australian Securities Exchange (ASX).
Targeting a December 21 listing date and with an offer closing date of December 7, the Brisbane-based explorer aims to raise up to $6.5 million through the issue of up to 32,500,000 fully paid ordinary shares at $0.20 per share.
The bulk of the funds will be used for the exploration and development of the company's portfolio.
"The best place to find a gold mine is in a goldfield and that's exactly where Traprock will be exploring with the funds raised from this IPO," Traprock's Managing Director, David Jelley said.
"We also have a number of drill-ready targets beneath past mining operations that need to be drill tested to define resources. We will be moving to speed development with the aim of quickly moving into production and capitalising on the current upturn in gold and copper prices."
The Mount Chalmers gold copper project is located 17km north-east of Rockhampton and consists of a volcanic-hosted massive sulfide (VHMS) system which has produced highly encouraging gold and copper grades, offering high potential for Traprock to establish its first gold and copper mine.
Additionally, the Woods Shaft prospect, located only 800m south-west of Mount Chalmers will be upgraded in the coming months and scoping studies have already commenced with the aim of taking Woods Shaft into production.
A further 12 VHMS mineralised targets are located within 5km of the Mount Chalmers resource, which are a later focus of development.
"We believe we can add considerable value to our asset base through an active drilling program which will upgrade the historic resources to the JORC 2012 standard. This will include a 7,000m drilling program at Mount Chalmers and 7,000m at Woods Shaft to upgrade the historic resource and 6,000m drilling at Warroo to initiate resource estimates," Mr Jelley said.
"We also plan to commence mining scoping study work on Mount Chalmers, Woods Shaft and Warroo, in addition to initiating a drilling program at Herries Range across six drill-ready targets."
One of the other potential gold mining sites in the region is just down the road at Cawarral.
Zhong Hao Mining has been granted a permit covering 31 square kilometres in the Cawarral area and was expected to start exploration at the end of September, according to sources.
The permit was one of 90 in the Rockhampton and Livingstone council areas including five granted to Orion Gold NL and three to Signature Coal.
The site stretches north to Bondoola and across Limestone Creek in the Livingstone Shire area.