Heritage Gold ready to mine cobalt in NSW

Friday 30th July 2010

Heritage Gold will be part of a new float to mine cobalt at Pyrites Hill, Thackaringa, near Broken Hill in outback New South Wales, the ASX and NZX-listed Australasian mining company said today.

The resource belongs to Broken Hill (BHPL) and is owned 33% by Heritage and 66% by global mining giant BHP Billiton, and is in the last stages of raising A$1 million in pre-IPO funding ahead of a separate listing for the cobalt prospect.

BHP was a late starter in the silver boom which began in the Barrier Ranges at Thackaringa in 1877.

In its operating report for the three months to June, released today, Heritage says "following on from previous exploration for Broken Hill-style mineralisation, BHPL is preparing for a rotary air blast (RAB) drilling programme of 4,375 metres to test extensions of surface base metal anomalies and sulphide gossans under shallow soil cover."

BHPL has identified several new Broken Hill-style base metal occurrences, as well as a near surface cobalt deposit. It also has uranium prospects at Dunmarra Basin in the Northern Territory.

The company has substantial New Zealand interests, including underground mines in the Coromandel, which are the subject of interest from Chinese investors at present.

Heritage has sought advice from Auckland private equity firm Campbell MacPherson to undertake a global search for suitable candidates, having provided further data to "Chinese groups interested in a joint venture and/or equity participation in the Project."

Campbell MacPherson is reviewing the Company’s data to gain a fuller understanding of the Project prior to seeking expressions of interest.

Heritage also stands to gain from Resources Minister Gerry Brownlee's minor mining win, to undertake an aero-magnetic survey of Northland.

Heritage holds licences in parts of Northland where a recent study conducted by Geological and Nuclear Science and the NZ Institute of Economic Research revealed the potential for $28 billion non-metallic and $5.2 billion of metallic mineral deposits in the Northland region. The aero-magnetic survey would be likely to help prove the resource.

The share most recently traded at 0.2 cents, and was at its highest at 0.6 cents in the last 12 months.

Businesswire.co.nz

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