A $5 million initial public offering opens today for OZZ Resources which is bringing five Western Australian gold projects to the market.
The company, which will trade under the ticker ‘OZZ’ when listed, has also pledged to keep a tight shareholder register.
All its projects are close to existing treatment plants with the company planning to toll treat all its ore, which it says will enable it to maintain the tight register.
Its gold projects are in the vicinity of established mining centres — Cue, Leonora, Meekatharra and Mt Magnet.
Helming the company are chairman Alan Lockett, previously managing director at the former Olympia Resources and credited with the discovery of the now mined Hart Range garnet deposit in the Northern Territory, and managing director Jonathon Lea, previously running the former Polaris Metals and who has also been involved in the development of several gold projects in Western Australia.
Promises financial discipline, cost control
Mr Lea says shareholders can expect a very active exploration schedule after listing.
“Shareholders can look forward to a diligent, focused and systematic exploration campaign across our key projects with regular news flow.”
He added that the company will maintain strong financial discipline and cost control.
Some 25 million shares are being offered at $0.20 each with the offer due to closed on 28 May.
Projects with historical gold activity
The key assets are three projects in the Cue-Meekatharra region, with one — Maguires Reward — an advanced target where historical drilling has returned 6m at 18.6 grams per tonne gold, 7m at 8.7g/t and 6m at 11.6g/t.
Maguires Reward lies 50km north of Cue and there are several small historic workings on the ground.
Then there is Rabbit Bore, 50km from Cue, where there are relics of historic mining but no records of production. This project is located 25km from the Bottle Dump prospect owned by Odyssey Gold (ASX: ODY) where visible gold has been intersected.
Similarly, at Wardarbie South, 75km northwest of Meekatharra, there is a cluster of old shafts but no production records have been found.
The fourth project is Mt Davis, 20km north of Leonora, and 5km from the 4.1 million ounce King of the Hills gold mine worked by Red 5 (ASX: RED) and 25km from the now closed Sons of Gwalia mine.
OZZ’s other project is Peterwangy, 40km southeast of Mullewa, which was in 1868 the site of Western Australia’s first gold rush. No drilling has been done there.
Drilling to begin in June
OZZ is targeting an ASX listing by mid-June.
A multi-pronged exploration program is planned for the second half of 2021 with drilling approvals already in place for Maguires Reward where 5,000m of reverse circulation drilling will begin next month.
In parallel, OZZ will carry out an airborne electromagnetic survey at the Rabbit Bore and Petewangy projects.
Rabbit Bore hosts a 5km strike length of prospective shear zones under cover, where soil sampling has also returned anomalous copper, nickel and cobalt.