alexander resources and drake resources

  1. 6,368 Posts.
    (AE) Ferret's Floats: ALEXANDER RESOURCES and DRAKE RESOURCES
    RWE News
    8:17:020 24/01/2005
    Sydney - Monday - January 24: (RWE Australian Business News) -
    *****************************

    ALEXANDER RESOURCES

    ASX code: AXD
    Issue price: $0.20 with 1-for-2 free atttaching options
    Amount sought: $3 million to $5 million
    Market cap: $7.8 million to $9.8 million
    Sponsoring broker: Bell Potter Securities
    Listing date: February 23

    Alexander is focused on discovering and developing gold deposits
    in Victoria, home of some of the world's biggest goldfields.
    Executive chairman Ian Goudie says the company's 83pc
    shareholder, Austindo Resources Corporation, is on the verge of
    developing a new goldmine in Indonesia.
    Alexander has acquired blocks of highly prospective gold
    exploration tenements covering the Castlemaine, Tarnagulla and Sebastian
    goldfields in central Victoria.
    The three project areas lie within the Bendigo Zone, a
    geological province which has produced more than 60 million ounces of
    gold, the equivalent of 2 per cent of total global gold production.
    The Castlemaine goldfield has produced 5.6 million ounces of
    gold and the Tarnagulla field has produced 700,000 ounces of gold.
    Mr Goudie says Alexander has generated a predictive geological
    model, and the marriage of that model with modern exploration data
    strongly suggests that previously undiscovered repetitions of major
    gold-bearing structures remain to be found in Alexander's project areas.
    Together with this methodology, Alexander will apply an
    exploration strategy to define mineralised structures from limited
    drilling.
    Eight high-quality drill targets are already defined, six being
    within the Castlemaine and Sebastian project areas.
    Fault reefs and associated mineralised structures are predicted
    to lie at shallow depths of between 100m and 400m below the surface,
    providing an opportunity for low-cost exploration and development costs.
    Five of the initial targets are located within 4 kilometres of
    the now-closed Wattle Gully Mine, which produced 415,000 ounces of gold.
    The Wattle Gully processing plant, wholly owned by Alexander, is
    currently mothballed, but provides further encouragement for early,
    low-cost gold production.
    The sixth target is within the Sebastian project area where one
    recent drillhole, designated FTG-01, has already intersected gold
    mineralisation where predicted.
    In the Tarnagulla goldfield, analysis and interpretations of
    recent mining and modern exploration data has been applied to develop
    two further advanced targets.
    "Over the past two years, more than $225 million has been raised
    for gold exploration and development in Victoria, with the great
    majority of the funds contributed by institutional investors.
    "This public offering will provide an opportunity for retail
    investors to participate in this new Victorian gold boom," Mr Goudie
    says.
    Shareholders in Austindo received a priority entitlement in the
    Alexander offering.

    *****

    DRAKE RESOURCES

    ASX code: DRK
    Issue price: $0.20
    Amount sought: $3 million
    Market cap: $6 million
    not underwritten
    Listing date: February 28

    Drake has been formed to acquire the tenements that make up the
    Mt Carrington Project in the Drake district from Cazaly Resources.
    The Drake region, in the northern goldfields of NSW, has a
    history in mining that dates back to the mid-19th Century.
    The Mt Carrington area has been explored by several groups over
    the past four decades, including Aberfoyle and CRA Exploration.
    Mt Carrington Mines commenced mining of near-surface gold
    resources in 1988, and produced 25,000 ounces of gold and 584,000 ounces
    of silver before closing the operation in 1990.
    This work only partially depleted the known resources.
    A recent JORC-compliant reserves estimate has given an inferred
    resource of 146,000 ounces of gold and 4.6 million ounces of silver in
    the project area.
    No exploration has been carried out at Drake in the past decade.
    Drake Resources now has access to the Mt Carrington mining
    leases and a surrounding exploration licence.
    It holds a database containing more than 2200 drillholes,
    district-wide geochemical and geophysical surveys, and regional
    metallogenic studies recently completed by the NSW Mines Department.
    The company will assess existing data and bring new ideas to a
    well-mineralised district with the aim of discovering further resources.
    Drake has also acquired interests in prospects in the Mt Palmer
    district, near Southern Cross, WA.
    The company holds a mining lease and exploration licence in this
    well-mineralised area.
    Past production from the lease exceeds 150,000 ounces at a grade
    of around half an ounce per tonne.
    The area is also considered to have potential for nickel
    mineralisation.
    In addition, the company has applied for an exploration licence
    at Lake Rebecca to add to its portfolio in WA.
    "Drake will have a strong project generation program that will
    build on its team's extensive experience in both eastern and western
    Australia with the aim of adding quality projects," chairman Brett
    Fraser says.
    ENDS
 
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