The stock opened at A16.5c and traded as low as 15c, before staging a modest recovery.

 

After some 900,000 shares were sold the stock closed down 15% at 17c, valuing it at $6.3 million.

 

Bindi, which successfully raised $4.8 million at 20c, was formed around a non-core asset once owned by Zenith Minerals in northern Queensland, and it intends to spend around $2.5 million on exploration for copper and gold at Biloela.

 

The work will start with drilling initially focused on the historical Flanagans and Great Blackall prospects, close to mines that produced in the late 1800s, with limited work prior to World War Two at Flanagans.

 

There has been limited exploration over the past few decades, little deep drilling below the historical mines at Great Blackall, and no drilling at all at Flanagans.

 

Flanagans is described as being a 1.5km-long zone of gold-rich outcrop marked by small surface pits, with good soil and rock chip anomalism that could be related to an intrusion-related gold system.

 

Great Blackall is a 500m-long gold-copper outcrop zone dotted with historical shafts and surface samples of up to 5.6 grams per tonne gold, 273gpt silver and 13.9% copper.

 

The past drilling defined wide zones of mineralisation with evidence for sulphides.

 

Bindi has suggested that the outcropping mineralisation could indicate a concealed, New England Fold Belt-style porphyry system at depth.

 

There are other prospects in the near mine environment, including a magnetic low at Inverted Pig.

 

It has secured landowner permission for up to 50 RC and/or diamond holes as its initial exploration plan.

 

Bindi is led by non-executive chair and well-known company director Eddie King, executive director and geologist Henry Renou, who has worked with Fortescue Metals Group and Ibaera Capital, and ex-Snowdon CFO Cameron McLean.

 

The top 20 shareholders owned about 37% this morning.