In a statement yesterday, KO Gold said it was selling a stake in the company to the tune of up to $C2m ($NZ2.44m) which would be used for general working capital and to fund their ongoing exploration and drilling programmes in Otago’s gold district.
As soon as a drilling contractor was selected and permits obtained, the company would focus on discovering gold in the Carrick goldfield — southwest of Australian company Santana Minerals’ Rise and Shine deposit — and testing mineralised extensions of the Hyde-Macraes shear zone, neighbouring Oceana Gold’s Macraes gold mine.
KO Gold announced its “aggressive” drilling programme in the district in June last year.
Chief executive Greg Isenor said at the time their plan included the possibility of making “significant” new gold discoveries at the Carrick and Hyde permits, and could lead to a much larger drilling programme depending on the results.
Since then, mining companies from across the globe have applied to take a stab at exploring and prospecting in the region — including those with shareholders from as far as the United States.
Last year, New Zealand Petroleum and Minerals received 447 applications for mineral permits across the country, a 55% increase on the previous year’s total of 288.
A total of 20 new prospecting and exploration permit applications were submitted throughout the Otago region over the six months to February, the majority of which were targeting minerals.
Yesterday, the price of gold climbed to about $5300 per ounce.
