20/07/1999 - 22:00

Substantial gold price slide claims another

20/07/1999 - 22:00

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THE recent significant slide in gold prices has claimed another victim, with AMX Resources NL placing on hold its robust Golden Cities project.

THE recent significant slide in gold prices has claimed another victim, with AMX Resources NL placing on hold its robust Golden Cities project.

The company has spent between $10-12 million on exploration and development and will complete a final feasibility this August.

Exploration covered an area of about 100 square kilometres in the south western part of the Scotia Kanowna Granitoid complex, generally considered to be prospective for gold mineralisation.

This delineated a total inferred and indicated resource of about 17.6 million tonnes grading 1.9 grams/tonne for 1,047,000 contained ounces.

AMX managing director Wayne Loxton said the company intends delaying development until the precious metal price recovers.

“There is no question that we will proceed with the project,” Mr Loxton said. “It just needs the right gold price.”

Meanwhile, the proposed sale of $4.5 million worth of gold assets by AMX has been cancelled.

AMX was to sell Davyhurst assets to Zurich Bay Holdings Pty Ltd, as trustee for the Mine Site Construction Service Trust after a due diligence.

While the due diligence showed the operation of the Davyhurst assets was viable at the gold price on the date of signing the agreement, the operation is not viable at the agreed purchase price given current gold prices.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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