Tuesday, January 27, 2009

Eagle Eye Returns To Gold Prospecting

Eagle Eye Metals, a diversified explorer listed on the Australian bourse, has stated that it had not shifted its exploration and development policies, despite the world’s financial crisis.

However the company, prospecting in Western Australia, would continue to research and assess its projects before implementing expensive exploration work.

“The widely publicised financial crisis gripping the world’s economies has only acted to reinforce the importance of Eagle Eye’s long standing exploration strategy of ensuring that any exploration activity funded by the company is undertaken in the most cost-effective manner possible. This strategy has seen Eagle Eye maintain a sound financial position, while advancing its most prospective projects,” the company said.

In its quarterly report, for the period ending December, Eagle Eye stated that total cash expenditure for the quarter had been kept down to A$140,000, saving an estimated A$50,000 a month. These savings were partly due to the company’s Waite Kauri nickel and cobalt project which is now in a joint venture with nickel producer Poseidon Nickel.

Eagle Eye was initially intended as a primarily gold search float, however the search was shifted to nickel and cobalt owing to an increase in world demand and price for these products.

But the company is returning its focus to gold prospects and said that it was working on exploration and drilling programmes for implementation on its Western Australian gold exploration projects.

“The financial crisis has also placed Eagle Eye in a good position for 2009, from an exploration perspective. While the gold price continues to maintain its high level, owing in large part to the world embracing gold as a safe haven, the cost of most exploration activities has fallen considerably. Therefore, at no time in the recent past has gold exploration been on a more attractive cost basis,” Eagle Eye noted.

In keeping with this, Eagle Eye undertook a review of into the gold prospectivity of all its projects, including preparation of cost, and budgets required to advance the project offering the highest potential of hosting economic gold mineralisation.

The results of the review confirmed the attractiveness of the Apollo Hill, Erlistoun, and Little Doris gold projects. These targets would form the basis of the initial exploration for 2009, that would include target drilling campaigns.

Source: Mining Weekly

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