New gold explorer Alloy Resources hopes to soon leave behind the explorer tag and become a fully-fledged miner via one of its advanced gold projects in Western Australia. Alloy listed on the Australian Stock Exchange at a 40 per cent premium, which was pulled back to a smaller margin by the end of its first day of trading. Shares opened at 28 cents and closed at 21.5 cents, compared to the issue price of 20 cents.
The company has raised more than $4 million against a backdrop of booming gold prices, with many market analysts taking a bullish outlook on where it is headed. Managing director Jayson Meyers said the gold price had helped the float but it was already well backed. “I think we did well for our first day and it’s a good place to start,” he said. Alloy is chaired by nickel miner Sally Malay’s managing director Peter Harold and he said the new company was well placed for a junior outfit.
“The company is in a strong position for a small gold exploration and project development company with a resources base of approximately 218,000 ounces,” he said. Dr Meyers said he expected the main project, Comet, would be in production by the end of the calendar year. Comet-Webb has a resource of 165,000 ounces and he said the company was initially targeting 250,000 ounces before eyeing half a million ounces.
The project is within trucking distance to Harmony Gold’s Mt Magnet mine and Dr Meyers said Alloy was in discussions with Harmony about a possible toll-treating arrangement. Another high priority project is the Horse Well project where there is a resource of 53,000 ounces. The company also has two grass root exploration properties in the North Kimberley region and near Kalgoorlie.