EXPLORATION ROUNDUP — Australians go head-to-head with Canadian juniors

Australian-based resource companies have watched with envy as their North American counterparts raised millions of dollars to acquire and explore mineral projects in every corner of the globe. Now, some have decided that if you can’t beat ’em, join ’em.

Nicholas Mather, president of Brisbane-based Western Pacific Gold (WPI-A), says Australian companies trade at a significant discount to their Canadian counterparts, which is one reason his company has sought a listing on a Canadian exchange. The other is that, in the wake of Bre-X Minerals’ huge discovery at Busang and Arequipa’s success at Pierina, companies listed on Canadian exchanges attract strong investor interest.

Still, Australian companies find that they must compete for money and attention with the better-known Canadian juniors. Mather believes that one way to achieve a competitive advantage is to have top-quality projects and a strong presence in the area of interest.

Western Pacific is currently exploring several prospects in the Solomon Islands, where a variety of deposit types are being sought. “We have experience in this area, so we don’t need outside consultants,” Mather points out. “And our exploration is effective and efficient.”

The company has more than 500 km of exploration acreage in the Solomon Islands, where it has spent over three years on research and target selection. The land package was selected for its geological potential to host large gold and copper deposits similar to Ok Tedi, Bougainville and others in neighboring Indonesia and Papua New Guinea.

Western Pacific recently announced the discovery of a high-grade, epithermal gold target at its Mbina project on Guadalcanal. The property also hosts a known porphyry copper prospect, as well as a zinc-gold target marginal to the copper core.

The new discovery was made in the Topacatcha Creek zone, where a 5-metre rock chip sample yielded an average grade of 69.5 grams gold per tonne from an intensely fractured, silicified, altered andesite with fine quartz carbonate-pyrite filler veins and disseminations. A 5-metre composite sample in fractured, altered andesite found 200 metres upstream returned an average grade of 1.13 grams gold.

The company says these results are from an area up to 1 km northwest of previously outlined mineralization at Mbina, which “demonstrates a separate mineralized epithermal gold system overprinting porphyry gold and base metal zones.” A program of intensified mapping and sampling will be carried out in an attempt to explore the structure further.

Western Pacific is also exploring the Chupukama Ridge prospect, which is believed to have potential as a porphyry gold deposit. Another exploration target is the Sutakiki prospect, which is near the 2-million-oz. Gold Ridge deposit, being placed into production by Ross Mining of Australia. This area is characterized by alluvial gold mining areas in the Suta River, as well as by quartz veins and alteration similar to Gold Ridge. The property is believed to be prospective for porphyry, skarn and replacement bodies.

Western Pacific recently carried out a geophysical program and plans to carry out 5,000 metres of diamond drilling on key targets next year. These will include the Mbina North porphyry gold system, the Topacatcha Creek epithermal vein, the Chupukama porphyry gold system and the Sutakiki gold prospect, as well as several gold-copper prospects in the Mbetilonga area.

Mather also heads Magma Pacific Gold (TBA-A), a junior exploring in Papua New Guinea. Its main project is at Ofi Creek, which is reported to host 85 million tonnes of 0.6 gram gold and 0.46% copper in a porphyry system.

High-grade gold prospects overprint the porphyry system.

Lone Star Exploration (LSE-V) is another Australian-based company that came to Canada to raise funds for its exploration programs in Southeast Asia. The company’s main asset is a 45% interest in the Awak Mas gold project in South Sulawesi, Indonesia. A feasibility study for the project is expected by year-end.

Yet another Australian junior, Metex Resources (MEE-V), secured its listing this year to expand its exposure and investor base. But, unlike a number of its counterparts which came to finance offshore ventures, Metex is continuing to explore its Laverton gold project in the Kalgoorlie district of its homeland. The company purchased the past producer from Western Mining last year.

The project hosts an overall resource of 5.4 million tonnes grading 4.4 grams gold per tonne, equal to 767,000 contained ounces.

This total includes a near-surface oxide resource of 2.6 million tonnes of 2.1 grams gold, as well as the underground sulphide resource of 2.7 million tonnes grading 6.6 grams.

A prefeasibility study, now in progress, is examining minable reserves, metallurgy and processing options for the oxide resource. The sulphide resource is also being examined, along with exploration plans aimed at expanding this resource in order to improve project economics.

Metex says its regional exploration program in the Laverton area has already outlined several prospective areas. A drill program will test these and other targets.