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Australasia Gold debuts at premium
January 18, 2006 - 12:00PM

New gold explorer Australasia Gold Ltd hit the boards of the Australian Stock Exchange on Wednesday, listing at a premium after raising $3 million in its initial public offering (IPO).

The stock opened at 25 cents after shares were issued at 20 cents each in the IPO.

The company has planned a maiden drilling program at its Wetherstones project on New Zealand's South Island where mineralisation has already been identified.

Behind the new company is former exploration manager from Normandy Mining, Trevor Ireland, who is credited with discovering much of the Granites and Callie gold deposits now operated by Newmont Mining.

"From our research, we believe that previous efforts to exploit deposits at Wetherstones terminated due to limitations of the technology of the times rather than exhaustion of the gold lode," Mr Ireland said.

More than $300,000 of the IPO funds will go towards the initial Wetherstones drilling campaign.

Mr Ireland said the program would most likely be followed by a development feasibility study on the prospect.

Australasia Gold also holds the Glencoe gold project in the Northern Territory which it said is ready for a feasibility study and could generate early cashflow if developed.