Edge of Tavua Basin
By RACHNA LAL
Additional Information: THE AUSTRALIAN
Dome Gold Mines Limited, an emerging copper and gold exploration company, has indicated its focus on locating and developing significant mineral discoveries in Fiji.
Dome operates three special prospecting licences spanning 500 square metres. These are the Nasivi Delta Project in Tavua, Central Viti Levu Project (adjacent to Namosi project) and Kadavu Island project.
Focus on Nasivi Delta Project
Following its initial public offer (IPO), Dome Gold says its immediate focus is its Nasivi Delta project, which is targeting alluvial gold and iron sands mineralisation.
The project lies 50km east of a 220-million-tonne iron sands deposit operated by Amex Resources.
It is also near the Vatukoula Gold Mine inland from Tavua.
Tim Morris, an analyst, said while resource delineation at Dome Gold’s Nasivi Delta project could drive similar interest, development is much less advanced and needs to overcome metallurgical hurdles.
Pre-IPO drilling late last year encountered significant “heavy mineral” grades ranging from 14 per cent to 42 per cent, although individual metal concentrations are uncertain.
Exploration works
Dome believes the Nasivi Delta Alluvial Gold Project has strong scope to advance rapidly to cash generation at relatively low capital cost.
It says past exploration work in the Nasivi Delta area undertaken in part by Dome included a seismic survey and grid based MMI soil geochemistry.
“This confirmed the presence of gold and its near surface distribution within the dry land alluvial area of the Nasivi Delta,” the company says.
“In addition, to the alluvial gold potential already identified at Nasivi, significant quantities of detrital magnetite have been noted.
“The magnetite appears to be present in sufficient quantity and concentration to represent an attractive iron sands target.
“Nasivi thus offers two quite discrete opportunities for discovery of an economic mineral resource.”
Assessments
Dome says provided drilling and analysis can be completed as planned by the end of this year, then the pre-feasibility study should be commenced in the first quarter of 2014.
They hope to have a full feasibility report available by the end of next year.
“This feasibility report will form the basis of a submission for a mine permit,” the company said.
“Assuming that Dome has been able to work closely with the Fiji Mineral Resources Department during the pre-feasibility and feasibility stages, the objective would be to seek formal approval for a mining project immediately thereafter.
“The budget allocated for Nasivi in 2013 is $640,000, mainly for continuation of the sonic drilling and metallurgical programmes.
“Follow up in 2014, including more sonic drilling and pre-feasibility studies, is budgeted at $680,000.”
The Australian reports, that whilst Dome does not have defined resources yet, the proximity of neighbouring deposits is providing impetus for investment.
Dome has re-scheduled its public listing in the Australian Stock Exchange after postponing it last year.
Mr Morris said private funding has sustained this Fiji-focused exploration company amidst a challenging capital market.