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Jan 2003 - Lodestone Expl

Lodestone Exploration Limited – Targeting Gold and Copper Mount Morgan Look-alikes in Queensland

  • The IPO Offer : Lodestone Exploration Limited (LODE) is offering a subscription of 12.5m shares at 20c to raise $2.5m (minimum subscription 12.5m shares raising $2.5m) to find hidden gold and/or gold-copper Mount Morgan look-alikes southeast of the historic Mount Morgan mine in QLD. As part of the offer, 1 free option (exercisable at 20c before 7 December 2004) is to be issued for every 2 shares subscribed.
  • LODE’s underwritten offer (by ABN AMRO Morgans) is on a project that is actually relatively very advanced, having already flown three surveys since 1998 including aeromag and TEM in a joint venture/exploration alliance with BHP Billiton, and delineated a series of targets that are ready to be drilled.
  • The rationale behind the project is that Mount Morgan (which produced 9.4moz of gold and 360,000t of copper before it closed in 1990) has been classified as a VHMS (volcanic-hosted massive sulphide) deposit, and in other parts of the world where these types of orebodies exist (such as Noranda) they usually occur in clusters or multiple deposits. Hence this project to find the other orebodies possibly associated with Mount Morgan, which may be hidden, but can be exposed using the latest advanced exploration techniques.
  • Using a geological theory of LODE’s Chief Geologist with knowledge of VHMS deposits, a concept for the project was made and has been verified in the field by observation of the rock structures and the airborne electromag surveys. Initially 17 targets have been identified and ranked according to their prospectivity. Now those targets await drilling.
  • Written by: Keith Goode
  • Thursday, 23 January 2003