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From: miningoz	4/21/2014 8:26:15 AM
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LionGold not giving up Unity Mining chase Controversial Singapore group LionGold has indicated it is not about to abandon its pursuit of ASX-listed Unity Mining, despite last year's spectacular market slump. LionGold gained prominence during 2012 and 2013 when it swooped on a collection of high-cost and troubled gold assets around Australia and the world, including the Ballarat fields made famous by the Eureka Stockade in 1854. Unity - with its operating Henty mine in Tasmania and its Dargues Reef prospect in NSW - became the best of LionGold's assets when the Singapore group bought 13 per cent of the gold miner 10 months ago. But the gold slump of 2013 took its toll on both parties, with Unity becoming a more marginal operation, and LionGold shares spectacularly collapsing in Singapore by almost 90 per cent[iframe id="titan-conditionalAd-300x250-pos-3" name="titan-conditionalAd-300x250-pos-3" width="300" height="250" frameborder="0" scrolling="no" marginwidth="0" marginheight="0" style="font-family: inherit; text-align: center; font-style: inherit; font-weight: inherit; margin: 0px; padding: 0px; border-width: 0px; vertical-align: bottom;"][/iframe] But LionGold has indicated today it is still acquisitive for gold, despite last year's market trauma. The group has agreed to increase its stake in Unity to 19.9 per cent under a share purchase plan run by Unity. The sums involved are small - LionGold will pay just $2.37 million to increase its stake - but they will indicate to marginal gold producers everywhere that LionGold is still active in the market place. No doubt the consistent rise in gold prices since December has helped resuscitate the Singapore group, with the yellow metal fetching about $US1330 per ounce this morning. LionGold has also agreed to escrow its stake in Unity for one year, guaranteeing Unity the continued support of its biggest shareholder. The news is a boost for Unity who themselves are rumoured to be circling Greatland Gold with an all share offer of 5p. Close proximity neighbours Greatland have a gold deposit south of Devonport has strong potential for mining. Parts of it have six times the gold grade that the Henty mine has recently produced. The Firetower deposit has so far been defined as 400 metres long with a width of up to 80 metres. The project comes under an agreement between Unity and London-listed Greatland Gold. Unity is also continuing exploration efforts at Henty, on the West Coast. It will focus exploration spending on resource extensions at its Read Zone. The Firetower area is about 35 kilometres from Devonport.

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