Gold News

Australian goldmine to work again

Australia's long-dormant Kalgoorlie gold mine Frog's Leg will be reopened for business after tests revealed that it contained double the amount of gold previously predicted.

The Toronto based firm La Mancha Resources will oversee the revival along with owner Dioro Explorations, with the first gold haul expected to arrive at the beginning 2008, the Australian Sunday Times reports.

A multi-million dollar drilling programme in March indicated that the underground mine had a resource of 369,000 ounces, but this figure nearly doubled last week when tests revealed that the mine had resources closer to 723,000.

Rhod Grivas, managing director of Dioro, said that the company was excited to be moving ahead with the project after years of frustration.

"We are very excited with the massive resource upgrade and are confident that the sharp
increase in resource will have a significant impact on the profitability of the project,'' he said.

"Both Dioro and La Mancha are very excited by the prospect of converting an excellent,
robust resource into a very profitable underground mine, while at the same time continuing to grow the known resources at the project.''

The known amount of gold could increase further after the next round of tests in September.


See all articles by Gold Bug here.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals