Wednesday, July 4th, 2012 - Paynes Find Gold Limited
Following completion of a $4m Rights Issue and $1m Placement on the 28th of June, 2012, Paynes Find Gold Limited (ASX:PNE) has announced a comprehensive Stage 2 Diamond Drill Program will commence on the 8th of July 2012, with Reverse Circulation Drilling starting on the 25th of July, 2012. The $1.8 million program is scheduled to run for 10 weeks, with 2 Drill rigs on the job, and results are expected to be received progressively on completion of the program.

Junior explorer Paynes Find Gold Limited has recently overcome adversity following a battle between shareholders and the incumbent Board. Perth entrepreneur and businessman, Carl Popal, and original tenements owner and prospector Doug Taylor who led the shareholders revolt, helped seize control of Paynes Find Gold Limited.

Following an investigation by the Australian Securities and Investments Commission (ASIC) and subsequent capital raise, the company is now debt free.

“At the end of 2011 the company was barely able to function as previous directors had syphoned all the funds, and it was looking like it was going to be wound down. It was a ticking time bomb”, Carl Popal, Chief Executive Director of Paynes Find Gold said.

“When I got involved with Paynes Find Gold, I started with less than 2% ownership in the company. I asked questions of the incumbent Directors, and did not like what I learned. I started communicating with other disgruntled shareholders, and gained their support and loyalty over time. Tenement owner Doug Taylor and myself communicated with more than 600 shareholders who reside in different parts of Australia, and the world. We all had a common goal – to make positive change happen within the company and on the Board“.

“We stood up for shareholders. One example was a lovely Grandmother in Victoria who invested in Paynes Find Gold because she knew the region, she also knew the Gold price was rising (in 2011) and having been diagnosed with Cancer, wanted to create a nest egg for her grandchildren. ‘Mum and Dad’ investors deserve companies they invest in to be run diligently and to adhere to strict compliance guidelines. That wasn’t happening at Paynes Find Gold. With a new Board now in place, the company has a bright future.”

“Lawyers said what we achieved was impossible and a real test for corporate governance at its limits. As far as I’m aware, this is an Australian first and a win for all investors. If you invest in a company, don’t be afraid to ask questions of the Board”, Carl Popal concluded.

A new Board has been appointed to Paynes Find Gold, including experienced mining industry figure Peter Landau as non-executive chairman. Australian businessman Malcolm Day also joined the Board as non-executive Director on the 1st July, 2012.

Paynes Find Gold is now heading in the right direction again. The tenement area includes 36 historic gold mines that have mined grades ranging from 15gpt gold to as much as 150gpt gold. Results from the Stage 1 Drill Program confirmed the presence of near-surface gold mineralisation. Stage 2 is north and east of the Stage 1 area to test open-ended known extensions of gold mineralisation. Undertaking the Program on behalf of Paynes Find Gold Limited are Murchison Exploration, Murchison Earthmoving and Hodges Australia Drilling.

Of the drilling program, Doug Taylor Executive Director of Paynes Find Gold Limited said, “Six diamond drill holes are planned to a depth of between 300 and 400 metres, and 70 reverse circulation drill holes are planned for between 5,000 and 6,000 metres to a depth of 120 metres. We will all get to see within five months where this project is at. Paynes Find Gold has now been fully reshaped and is poised to excel in what it was intended for by my family originally.

Carl Popal said, “We can now move forward exploring as intended originally, as CSA global have now completed the extensive data compilation giving better outlook into the success of second stage drilling. The second stage drilling is to explore and establish JORC compliance. Having all data compiled from first stage drilling, together with the historical mining data, we have a better outlook into the upcoming second stage drilling program. The company currently has huge upside.”

Paynes Find Gold is planning further Diamond and RC drilling programs to the north and east to test open-ended known extensions of gold mineralisation. From Stage 1, Assay results on the Cross Section confirm presence of near surface low-grade gold mineralisation over significant widths indicating potential for large-scale bulk mining.

Paynes Find Gold Limited is located in a historically significant gold producing region in Western Australia, 420kn northwest of Perth. Expressions on interest from journalists to visit the operation are invited.

Contact Profile

Paynes Find Gold Limited


Paynes Find Gold Limited (“PFGL” or the “Company”) is a publicly listed gold exploration company (ASX: PNE) registered in Australia and based in Perth exploring for viable mineral deposits at Paynes Find, an historically significant gold producing region 420km Northeast of Perth, Western Australia and serviced by the sealed, Great Northern Highway and an airstrip.

PFGL has a significant tenement package that includes practically all of the historic Paynes Find Goldfield covering 940ha. Within PFGL’s tenement area, which is some 5.5km long by 2km wide, ten major gold-bearing lode lines had been identified together with 36 historic gold mines that mined grades ranged from 15g/t Au to as much as 150g/t Au.

Since listing on the ASX (2 December 2010), the Company has completed geological and structural mapping at scales of 1:5000 and 1:2000 which has identified 41 gold mineralised quartz reefs over a width of 600m across the main northern section of the Paynes Find Goldfield. This is a significant increase on the 10 main reefs reported on in the Prospectus.

The mapping suggested an average quartz lode separation of approximately 15 metres. There is also geological evidence of lower grade “link” structures between the main high-grade gold lodes. The dense quartz vein mineralisation, in a strongly deformed quartz diorite host, has continuous outcrops over a strike length of at least 2,000m before dipping beneath laterite cover. Additional mineralisation has been identified over a total distance of at least 3,000m and within various rock types flanking the main goldfield.
Carl Popal
P: +619481 3992
M: 0421 994 900
W: www.paynesfindgold.com/

Keywords

Paynes Find Gold Limited, PNE, Stage 2 Drill Program, Mining, Gold, Malcolm Day

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