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Dec 2002 - Hill End Gold

Hill End Gold Limited – Expecting to Generate Cashflow by mid - 2003.

  • The IPO Offer : Hill End Gold Limited (HEG) is offering a subscription of 17.5m shares at 20c to raise $3.5m (minimum subscription 13m shares raising $2.6m) to reopen the old Hill End goldfield in NSW. As part of the offer, 1 free option (exercisable at 25c before 30 June 2005) is to be issued for every 2 shares subscribed.
  • HEG is very aware of the pitfalls that some of the later 1980 or so syndicates were trapped under, and hence intend to generate cashflow as soon as practically possible, aiming by Mid - 2003, should the IPO attain its minimum raising (and preferably closure) by the end of December 2002.
  • HEG has an extensive line of strike of old workings (about 27km or so) on which to explore, so it has the potential to have a very long life. Although it is focusing on the old workings and the stope fill and unmined areas for its initial production, it has to be remembered that the veins are “open” at depth.
  • It has to be recognised that this is a nuggetty distribution in which it is extremely difficult to determine expected grades before the plant has been in production for as long as a year or so, at the same time it also has to be noted that nuggetty distributions can produce spectacular results, as have occurred in the past.
  • The grade of the stope fill is thought to be in the region of 4 to 6gpt, but could be much higher since extraction techniques were fairly archaic, as illustrated by Silver Orchid mining Golden Gully (which lies north of the Hill End township) and reputedly only achieving a 50% recovery treating 300t of 2oz/t ore using its stamp battery in 2000.
  • Written by: Keith Goode
  • Monday, 02 December 2002

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