Geologists go

to the market

Pacific Islands gold explor er, Austpac Gold N.L. last month issued a pros pectus to raise AsB mil lion for extensive exploration of 16 epithermal prospects and one other gold prospect. (PIM, July, page 32).

The issue was almost im mediately oversubscribed.

Formed by the team of geologists who planned the Kennecott/Niugini Mining successful exploration in PNG, Austpac holds ground in Papua New Guinea, Solomon Islands, Vanuatu and Fiji.

The issue, which is for 32 million fully-paid 25 cent shares and 16 million free 1989 op tions, is underwritten by Mel bourne brokers May and

Mellon The main thrust of the com pany’s gold search is along the Pacific “ring of fire” volcanic zone.

The recent discoveries at Lihir, Simberi, the Emperor de posit at Vatakoula in Fiji, and the famous Martha lode ore body at Waihi in New Zealand are all “boiling zone” epither mal deposits and have led geologists to re-appraise the gold mining potential of the whole region.

Austpac, with their experi ence gained from the Kenne cott/Niugini program, was an early starter in the gold rush, acquiring prospects throughout the islands.

The company now holds

eight areas in Fiji, two in Vanuatu, four in Solomon Is lands and three in PNG.

Austpac’s initial programs in clude a continuation of drill testing at the Vuda prospect in Fiji, geological mapping and sampling, drill target delineation and, where appropriate, said a company statement, drill testing of its other prospects.

The cost of this, plus recon naissance of additional areas, is expected to exceed $4 million over the next two years.

The directors intend to spread the cost through joint ventures on some properties.

As well as its gold exploration activity, Austpac also holds 9.9 per cent of the recently floated industrial, Montoro Resources Ltd. which is developing a major clay building products facility near Sydney.

Montoro will hold a 19.8 per cent interest in Austpac.