Business

Mooloo Rd deposit is news to mining world

Manganese deposits have been discovered under Mooloo Rd.
Manganese deposits have been discovered under Mooloo Rd. Contributed

MARY Valley mining hopeful Eclipse Metals Ltd has just announced a new find of manganese ore in a previously unknown deposit between Mt Mooloo and Eel Creek.

The announcement comes on top of the company's previously announced Amamoor Ridge exploration interest.

The new discovery, reported to company officials over the Anzac Day long weekend was followed by a request from company executives on Monday for a suspension of trading, after share prices more than trebled in April from 0.3c to an initial high of 1.1c.

The company was required by stock market regulations to seek the suspension while it prepared a report explaining the price surge.

"We have to be very careful in the wording of our announcements," executive chairman Carl Popal told The Gympie Times from his Perth office yesterday.

He pointed out that the announcement of the newly discovered Mooloo deposit was supported by an independent "competent person" statement by geologist George Karageorge, a member of the Australian Institute of Mining and Metallurgy.

In a response to the ASX on Monday, company secretary Keith Bowker attributed the April share price surge to positive interest in media reports, "including in The Gympie Times newspaper" on April 16.

The article, headed "Exciting indications of Mary mining future," outlined new exploration work over historic mined areas in the Mary Valley.

That report quoted company executives who said they were "excited" at "significant" prospects for manganese exploration in the Mary Valley.

It was based on a formal stock exchange announcement by the company of new geological and geochemical exploration programs in the Mary Valley.

Yesterday, it seemed the work had already paid off, with the reported discovery of the previously unknown manganese deposit in the area between its Mt Mooloo and Eel Creek exploration territory.

Company secretary Keith Bowker said the company could not explain the share price spike except as part of a positive response to its exploration announcement, on April 15.

"The announcement has attracted positive interest from local media," company secretary Keith Bowker said in his response to ASX queries.

Share prices headed upwards on April 17, when they rose 33% to 0.4c, on trading of nearly one million units. Another 1.5 million sold on April 22 at 0.5c, followed by 1.1 million at 0.8c the next day.

They peaked at 1.1c before dropping to a closing price of 0.9c on a volume of 50,000 shares on April 29.

The new find can be seen in road cuttings in Mooloo Rd.

Topics:  manganese mining

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