Gold rush builds up steam

A $200M mine employing 350 people is being proposed over major historic gold prospecting areas about 120km north of Richmond in North Queensland.

Venturers behind the proposal include Queensland coal billionaire Chris Wallin.

If the Woolgar project proceeds — which partly hinges on a mining lease now being sought — it will be the next big gold mine in Queensland with resources of more than two million ounces.

The company proposing the mine is Strategic Minerals Corporation Pty Ltd controlled by Mr Wallin and Brisbane accountant Paul Whimp. Mr Wallin is an ex-government geologist who founded QCoal in 1989, developing coal mines in the Bowen Basin, including Sonoma and Byerwen.

Mr Wallin’s QGold Pty Ltd led a takeover of Strategic Minerals where a small number of shareholders last year objected to the corporate regulator, claiming the 50 cents a share price had undervalued the company, although this was disputed by Mr Wallin.

Strategic already holds a number of mining leases and exploration permits for the Woolgar project.

It is now seeking a further lease to allow for the construction of processing plant, run of mine pads, offices, dams and potential accommodation.

According to Strategic’s lease application, the primary resource is its Blue Vein South deposit on Middle Park Station, but other nearby deposits include Soapspar, Camp Vein, Grand Central, Explorer and Lost World.

The application stated Blue Vein South had increased considerably since other leases were granted recently.

“It is the intention of Strategic to source these individuals from the local region area where possible and encourage all contractors engaged on the project to adopt a comparable approach,” the application said.