RNC Minerals gold strike in Western Australia sends stock soaring

Adjust Comment Print

A mine in the State of Western Australia has uncovered a rare and extensive pocket of gold, so far estimated to be worth over 10 million USA dollars.

The largest rock weighs more than 200 pounds and is covered in an estimated 2,400 ounces of high-grade gold -a $2.9 million find.

The senior geologist on the job, Zaf Thanos, told Australia's ABC News that it's usually only possible to see gold through a magnifying glass in most mines.

The biggest of the stones came in at 90kg and is estimated to contain around 2,300 ounces of gold, making it worth around £2million.

More news: State Health Officials Announce First West Nile Deaths In 2018

The Beta Hunt mine, near Kalgoorlie, had primarily been a nickel mining operation, but RNC found traces of gold in June and then targeted the gold vein 1,600 feet underground; the gold was extracted from an area just 10 feet wide and 10 feet high.

"This is the sort of find that you would associate with the 1860s Gold Rush and will probably cause a boom in exploration", he said.

RNC said that while most gold discovered in the area is melted down into bars, the rarity of the larger stones means that they may be more valuable to a collector in their present condition. "I've been an airleg miner for 16 years".

Shares of RNC Minerals soared on Monday, following the company's announcement that it had mined the fortune in a single blast of a 130-tonne cut of rock at its Beta Hunt Mine. Never in my life have I ever seen anything like this. "But we bought it because there were a bunch of gold deposits sitting beneath it".

More news: Hurricane Florence: South Carolina vs. Marshall matchup canceled due to storm

Despite the discoveries, however, RNC Minerals still intends to sell the mine, which is typically used to generate nickel for the steel industry. "There were chunks of gold in the face, on the ground, truly unique I reckon", according to the ABC news report.

An example of the bonanza-grade gold at the Beta Hunt Mine in Australia.

"We're going to look at all the alternatives in terms of whether we look to raise capital at the mine level, whether we look at spinning it out publicly, whether we look at joint venturing with another mining company, this allows all options to be on the table for us", he said. "We're really looking forward to auctioning the key stones off over the coming weeks. When you look at nuggets, which are a solid piece of gold, the biggest are around 2,000 ounces, so this is right up there in terms of the largest specimens we've ever seen".

More news: Cardinal accused of covering up sex abuse to meet with pope