Australasia Gold to start Otago exploration project

Australian mining company Australasia Gold plans to start exploration on its Wetherstone project, near Otago, next month.

Australasia Gold's managing director, Trevor Ireland, said yesterday the company, which will list in Australia tomorrow, wanted to target known mineralisation with its maiden drilling programme.

"From our research, we believe that previous efforts to exploit deposits at Wetherstone terminated due to limitations of the technology of the times rather than exhaustion of the gold lode," he said.

Ireland said the company would spend more than A$300,000 ($327,332) on the initial drilling programme which would test extensions of known high grade gold mineralisation at Wetherstone.

A development feasibility study would follow the drilling programme.

The Adelaide-based company raised A$3 million in its initial public offering.

Australasia Gold is also ready to prepare a feasibility study on the Glencoe gold deposit in the Pine Creek region of the Northern Territory.

- NZPA