New Energy to recapitalise as gold explorer

AFTER several years in the corporate wilderness, the failed ruby miner turned vanadium-graphite speculator New Energy Minerals is looking to get into the northern Queensland gold game.
New Energy to recapitalise as gold explorer New Energy to recapitalise as gold explorer New Energy to recapitalise as gold explorer New Energy to recapitalise as gold explorer New Energy to recapitalise as gold explorer

Sampling at Hurricane by Placer Gold

Haydn Black

Reporter

Leading the recapitalisation effort is recently appointed managing director Andrew Haythorpe and reappointed directors Dr Bernard Olivier and Dr Evan Kirby.
 
NXE has landed on privately-run explorer Placer Gold has the vehicle for its reinvention, gaining access to the Hurricane project: three granted gold-antimony leases containing known vein systems that the junior believes can support JORC resources and, ultimately, a mine development, potentially using a low-cost heap leach starter option.
 
The vein systems are said to be widespread, with the largest, Tornado, mapped for over 700m. 
 
The area was previously explored by Homestake Gold in 1988 as the Mt Mulligan project.
 
Gold-bearing rock chips have been collected from the quartz breccia veins, with the highest grade to date being 163 grams per tonne at the Typhoon vein, which averaged 19.92gpt from seven samples.
 
The Holmes and Bouncer veins returned antimony averaging 10.1% and 13.4% respectively. 
 
Past work, including a 60kg bulk sample from the Tornado Vein, averaged 4.2gpt gold, and metallurgical tests completed by Gekko Systems suggested fast gold recoveries of 99% from oxidised, non-refractory ore.
 
Assuming its plans come to fruition, with shareholder and regulatory approvals required, NXE aims to move to drilling later this year with the aim of defining at least one shallow resource within the next few years.
 
As part of its relisting, mandated Adelaide-based Baker Young has been appointed to help manage a A$5 million capital raising at 20c 
 
The company will rebrand as Goldoz.
 
The vendors will be paid $255,000 cash and 2.6 million post-consolidation shares, with NXE looking at a 70-for-1 consolidation to clean up its corporate structure. That would value the deal at around $775,000.
 
NXE chairman Ian Daymond, who is set to move to a non-executive role and is a shareholder in the company that introduced Hurricane to NXE, said the company's 18-months-long search for a new project had delivered it a "highly prospective gold assets in a good location at an attractive price".
 
It has been a tortuous few years for NXE, after the wheels came off its Montepuez ruby mining operation in Mozambique (as Mustang Resources) in 2018.
 
Its pivot to energy minerals at Caula hit issues that substantially reduced the sale price.
 
It suspended its shares in October 2020 with the hopes of moving on the Hurricane deal, but was put in the sin bin by the ASX a month later until it could finalise a $5 million dispute with Arena Private Investments, which was achieved in February. 
 
NXE agreed to settle by paying $1.85 million, including $500,000 cash, over 12 months from relisting. 
 
A shareholder meeting is planned for July with the aim of relisting in August.