Dampier Gold Limited is a gold exploration and mining company with one mine development project and two major exploration projects.
The MINE DEVELOPMENT PROJECT is under a binding farm-in Joint Venture with Vango Mining Limited (ASX:VAN) covering the partially developed K2 Gold Mine adjacent to the Plutonic Mine in the East Murchison Goldfields north of Meekatharra, in Western Australia. The K2 Underground Mine includes an existing 1.4km decline to the ore blocks developed by Resolute Mining Limited (ASX:RSG). For K2, Dampier has the right to earn a 50% interest in the project for the expenditure of up to a maximum of A$3M with further contributions thereafter on a pro-rata (50:50) basis. Dampier executed the agreement with Vango on 12 May 2017. Frustratingly for Dampier shareholders who strongly supported this transaction, the mine was planned to be producing gold in the first half of 2018. However since execution of the binding joint venture, Vango has persistently reneged on the deal and has demonstrated a consistent unwillingness to acknowledge Dampier’s rights which has led to a dispute and an opportunistic take-over attempt by Vango as Dampier moves to enforce its contractual rights. On execution of the K2 JV in May 2017, the planning was in place to dewater and refurbish the existing decline in the K2 Gold Mine, and bring the Mine into production within 9 months with the aim to profitably extract the first 50,000 ounces within 24 months.
EXPLORATION PROJECTS Dampier holds 100% over ~1,000 km² of exploration tenements covering several ancient paleo river channels in the Kimberley Region of Western Australia, referred to as the Ruby Plains Placer Gold Project. The unexplored Ruby Plains tenements are considered prospective for older (Tertiary circa 50Mya) biogeochemical enriched gold deposits and younger (Quaternary circa 3Mya) quartz pebble conglomerate and gravel placer deposits similar to the Californian Goldfields. The historical Halls Creek Goldfield lies to the north west which is believed to be the potential source of gold in the paleo-channels at Ruby Plains.
Dampier recently acquired 80% of two tenements north of Kalgoorlie in the Western Australian Goldfields at Menzies (196 km²) and Goongarrie (154 km²). Menzies, which lies adjacent to the Menzies gold camp has exploration potential for both hard rock and placer gold and Goongarrie, which lies southwest of Menzies overlies an alluvial covered greenstone belt with untested exploration potential for hard rock gold and base metals.
The Menzies and Goongarrie acquisitions present exciting and cost-effective exploration opportunities for Dampier. The projects both lie within significant mineralised belts where company making projects have been developed from grass roots discoveries into successful gold mining operations. The Menzies gold camp, although a significant historical producer, presents as an under explored anomaly relative to other gold camps on the Norseman – Wiluna greenstone belt such as Kalgoorlie, Leonora and Wiluna. The Goongarrie project overlies un-exposed and interpreted greenstone lithologies which have had very limited exploration. Dampier will actively explore both projects this coming field season with drill targets expected by the end of the June quarter.
The K2 gold deposit is located in the north-eastern part of the tenement block which comprises the Plutonic Dome Project, approximately 180km south of Mount Newman and 30km north of Sandfire’s Degrussa copper gold mine.
The Ruby Plains Gold Project covering more than 800sqkm of tenements, is located approximately 340km SSW of the regional town of Kununurra and 70km SSE of the historic gold mining town of Halls Creek, in the East Kimberley region of WA.
The Menzies project is located immediately west of the town of Menzies, which is situated around 120kms north of Kalgoorlie in Western Australia.
West Goongarrie is located about 100kms north east of Kalgoorlie and best access is via the Davyhurst road from Siberia or alternately the Evanston t-road from Menzies.