A punt on an old gold mine on a Torres Strait island looks like paying off for a Melbourne- based mining company.
The Alice Queen company formed a joint venture with the Kaurareg Aboriginal Land Trust in 2013 to mine for gold on Horn Island after previous exploration work there had been unsuccessful.
Alice Queen managing director Andrew Buxton said the results from initial exploration work had been extremely positive.
“Drilling in and around the open pit has come up with an initial resource of 492,000 ounces of gold,” Mr Buxton said.
“We’re hoping to get to 1 million ounces.”
In a statement to the ASX on October 31, Alice Queen said Horn Island had the potential to rival, “major past and present multi-million-ounce gold producers of north-east Queensland, such as Kidston, Mt Leyshon, Ravenswood and Mt Wright.”
“Age dating has confirmed that Horn Island is of the same broad age as these deposits,” Alice Queen said in the statement.
“Structural studies of the Horn Island pit mineral resource area have shown that the gold is contained in a large tension vein array setting with significant probable extensions away from the resource area which have had only very limited drill testing.”
While the most recent attempt at mining the site had ended in 1989, Mr
Buxton, a former managing director of Kidman Resources, said he was always confident of its potential.
“When I finished with Kidman Resources Ihadafairbitoftimeonmyhandsand
an opportunity to look around for another project,” he said.
“I had a strong technical team looking at Horn Island and their belief was that there was certainly real potential there.”
Mr Buxton said the future looked bright for gold as a commodity, while one of the advantages of exploring on Horn Island was that it had well-established infrastructure.
“There are all-weather roads to the mine, a deep-water port and twice-daily flights to Cairns,” he said.