It’s a golden opportunity

Time right to revisit mine site

WITH gold prices at near-record highs in Australia, the potential purchase of an old gold mine north of Townsville could not come at a better time for Greenpower Energy.

The company has an option to acquire the former gold producing mines of Camel Creek, Golden Cup and Big Rush about 200km north of Townsville, near Greenvale.

Mining stopped in the 1990s when the gold price was about $US400 an ounce, now it’s higher than $US1200.

Managing director Cameron Mclean said the company saw potential in bringing the mines back into production.

“The next two months is about getting an understanding of how to get this project back online,” he said.

Mr Mclean said the initial mining operation was not done at big depths so there was an opportunity for additional production and revenue to come from the site.

“This is a huge opportunity to acquire a previously producing gold mine in our own backyard,” he said. “Subject to due diligence we will work hard to bring the mine back online in the near term.”

Greenpower Energy is a Perth-based battery metals focused exploration company that has a Townsville presence.

In Queensland they have exploration projects for cobalt near Greenvale and vanadium at Julia Creek. It has a geologist based in Townsville.

Mr Mclean said with the fluctuations in battery metal prices, particularly the drop in cobalt, the company thought a gold project was a good option for investors.

“We thought we are active in the area and we have a good crew in Perth and Townsville,” he said. “It’s obviously not without its challenges.”

Mr Mclean said Greenpower Energy had met with departmental staff to gain a better understanding of what it would take to bring the mines back online.

He said the company continued to comb through information about whether it was viable to restart production and acquire the mines.

In a statement to the Australian Stock Exchange on May 14, the company said it had 90 days to complete due diligence on whether it would acquire the project.

“The next two months is about getting an understanding of how to get this project back online and working out the costs,” Mr Mclean said.

“There is a risk but there is an opportunity.

“It’s about looking at the costs and seeing what’s at stake.”

Mr Mclean said although it was too early to talk job numbers, if mining restarted there would be a major benefit to regions like Townsville.