Gold drilling on track

Kalgoorlie Miner - - NEWS - Jar­rod Lu­cas

Emerg­ing gold ex­plorer To­rian Re­sources will let the drill bit do the talk­ing as it strives to de­liver share­hold­ers an early Christ­mas present.

With $2.7 mil­lion in the kitty, To­rian has com­pleted its first week of drilling at its Zuleika pro­ject, north-west of Kal­go­or­lie-Boul­der, in what many con­sider Aus­tralia’s hottest ex­plo­ration ad­dress for gold.

North­ern Star Re­sources man­ag­ing di­rec­tor Bill Beament ad­mit­ted that much, telling this week’s Den­ver Gold Fo­rum the ex­plo­ration suc­cess at the miner’s Kun­dana oper­a­tions has been “like shoot­ing ducks in a bar­rel”.

To­rian’s Zuleika joint ven­ture com­prises 191sqkm — the south­ern ten­e­ment bound­ary is 5km north of North­ern Star’s rich Raleigh mine and 8km north of Evo­lu­tion Min­ing’s newly ac­quired Frog’s Leg mine.

Another neigh­bour is Phoenix Gold, the sub­ject of a tug-of-war be­tween Evo­lu­tion and China’s Zi­jin Min­ing Group which have launched takeover bids worth $56.4 mil­lion and $47 mil­lion, re­spec­tively.

To­rian man­ag­ing di­rec­tor Matt Sul­li­van, the ge­ol­o­gist who is cred­ited with the Kanowna Belle dis­cov­ery in 1989 and has had a hand in find­ing more than 13Moz dur­ing his 25-year ca­reer, is a big be­liever in where there is smoke, there is fire.

He is tak­ing noth­ing for granted in the risky ex­plo­ration busi­ness but is adamant “time will tell”.

“We are in that en­vi­ron­ment where if we start hit­ting some­thing which looks pretty cool …let’s put it this way, we’ve al­ready had a num­ber of in­quiries from peo­ple to put in more dol­lars,” he said. “I’m not here to tell peo­ple what we do and don’t have at this point, but what we do have is a good chance in a good area. “We’ve just got to do the work.” To­rian was drilling this week close to the waste dump at Nor­ton Gold Fields’ Bul­lant un­der­ground mine and will con­tinue on var­i­ous tar­gets un­til Christ­mas.

It con­tin­ues a rapid turn­around for To­rian, which listed in 1986 as Cluff Re­sources Pa­cific and at one point was linked with Kerry Packer’s Con­sol­i­dated Press Hold­ings over a ruby mine in the NSW Hunter Val­ley.

To­rian chair­man An­drew Sparke said re­cap­i­tal­is­ing the com­pany was “pretty tough” but strong in­vestor sen­ti­ment is build­ing for Aus­tralian gold stocks.

A US-based in­vestor has thrown in $1 mil­lion. An­ton Bil­lis’ Tri­bune Re­sources and Rand Min­ing also has some skin in the game, around $250,000 worth of stock, but less than 5 per cent of To­rian.

“You’ve got neigh­bours (Zi­jin) on our eastern bound­ary which pur­chased a block of land (Nor­ton) for $250 mil­lion, then Evo­lu­tion paid north of $400 mil­lion for La Man­cha to our south and Phoenix is in play at the mo­ment,” Mr Sparke said. “North­ern Star also bought the East Kun­dana joint ven­ture last year. If you look at our $20 mil­lion mar­ket cap you can start to see the po­ten­tial up­side — it’s an easy story to con­vey to in­vestors if we can make another dis­cov­ery along Zuleika.”

To­rian shares were up 7.69 per cent at 28 cents yesterday.

Pic­tures: Jar­rod Lu­cas

Ori­gin Drilling com­pletes ro­tary-air-blast drilling at To­rian Re­sources’ Zuleika pro­ject, north-west of Kal­go­or­lie-Boul­der.

To­rian Re­sources chair­man An­drew Sparke and man­ag­ing di­rec­tor Matt Sul­li­van at the Zuleika pro­ject.

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