The Australian Financial Review reports that with commodities continuing a strong post-correction recovery last week, further gains in resource stocks this week are likely. This includes gold, which last week hovered near USD$670 an ounce.
A Joint Venture agreement between Goldsearch (ASX: GSE), BHP Billiton Minerals (ASX: BHP) and Independence Group (ASX: IGO) has been completed for the East Musgrave Project in South Australia. Under the terms of the new joint venture agreement, BHP Billiton can earn a 65% interest in the project by spending AUD$25 million or by delivering a bankable feasibility study within 10 years.
West Australian company De Grey Mining (ASX: DEG) has completed a placement of 26.8 million new shares, adding AUD$3.35 million to the company’s working capital position. The issue will allow De Grey to enter the next phase at its Turner River project, where the company has identified a number of prospects containing gold, as well as zinc, silver and lead.
Goldstar Resources (ASX: GDR) has announced a 110% increase in the estimated tonnage of potentially high-grade material in its Tubal Cain Project in Victoria, taking the total estimate to 2.3 million tonnes. The company has said that Tubal Cain, a historic gold mine in Victoria, represents a priority development for the company. Shares in Goldstar are currently trading at AUD$0.65.
The Daily Reckoning Australia