Drummond Gold (DGO)

Shares / Stock Code

DGO

Stock Exchange / Sharemarket

Australian Securities Exchange

Drummond Gold (DGO) develops, acquires and explores for gold deposits in the Drummond Basin, central Queensland. The vision of the company is to become a significant gold and base metals producer. To achieve this, the Company is pursuing a strategy of growth through exploration, acquisition and early production in the Drummond Basin in Queensland, and Maldon in Victoria.

The Company aims to achieve gold producer status in 2010 through the acquisition of the Maldon Gold Project, generating cashflow from which surpluses can be applied to fund ongoing exploration and development. The current projects will potentially provide the Company with two hubs of operation in central Queensland and central Victoria.

Drummond Gold Limited has its origins in 2004 when its founders began to evaluate several properties in the well-known Drummond Basin mineral province of Central Queensland. This process resulted in the formation of Mt Coolon Gold Mines Pty Ltd (MCGM) in 2006 and the acquisition of the Mt Coolon tenements and associated historical geological and production information in relation to the tenements. When Drummond was incorporated in April 2007, MCGM became a wholly owned subsidiary. The Company was listed on the Australian Securities Exchange in December 2007 (ASX: DGO).

Today, Drummond brings together former significant gold mines and other gold and base metals prospects in the well-known Drummond Basin mineral province of Central Queensland. The wholly owned Mt Coolon (Koala) and Glen Eva mines and the Yandan mine (in which Drummond can earn a 51% interest) produced more than 600,000 oz of gold over several decades. Gold mining began at Mt Coolon in 1914. Profits from early gold production there were used to form Western Mining Corporation in 1933 as it embarked on its initial Kalgoorlie ventures.

Selective acquisition and a vigorous exploration program in the two years prior to listing and a $7 million IPO capital raising ensured that Drummond hit the ground running as a fully operational exploration company with a significant, established gold Resource. In 2008, Drummond entered into an agreement with Straits Resources Limited to earn a majority interest in the Yandan gold project, allowing Drummond to significantly increase its gold Resources. In 2009, Drummond launched an exploration drilling program, targeting the discovery of a high grade feeder system beneath the East Hill pit.

Drummond Gold has also prepared a conceptual processing plan, for which a scoping study has been completed, under which several mines to be developed in the Mt Coolon region would supply ore to a central treatment plant. Drummond has a prime mineral exploration address in the Drummond Basin which hosts Pajingo and other epithermal gold deposits. With the Mt Coolon gold field at its centre, it provides fertile ground for Drummond’s modern exploration.

Drummond Gold (DGO) Products and Services

  • Gold and base metals exploration

Drummond Gold (DGO) Locations and Subsidiaries

Drummond Gold Head Office
Suite 8, 60 Macgregor Terrace,
BARDON, QLD 4064
Phone: 61 7 3367 2144
Fax: 61 7 3367 2165

Drummond Gold (DGO) Share Price

Submitted by ASX Listed Company on 17 March, 2010 - 02:58

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