Fortescue’s Power plays waiting game with Pilbara gold

The Pilbara is in the grip of gold fever, but iron ore miner Fortescue is in no hurry to join the rush.

Billionaire businessman Andrew Forrest addresses the media

A gold rush in Western Australia’s Pilbara has created more than a billion dollars of value in a matter of weeks, but the region’s biggest tenement holder is in no hurry to join in the frenzy.

Andrew Forrest’s iron ore heavyweight Fortescue Metals, which is increasingly looking to the potential of its massive Pilbara ground position for other commodities, holds a large parcel of ground to the south of the Purdys Reward gold discovery that has ignited the share prices of several junior explorers.

But Fortescue chief executive Nev Power said the company had not taken any action in response to the gold frenzy nearby.

“There are no specific developments to advise in relation to gold,” Mr Power said in an emailed statement to The Australian. “A number of Fortescue’s Pilbara tenements are prospective for other minerals, including gold. While our primary focus is on core iron ore assets we are continuing to undertake exploration for non-ferrous minerals across these Pilbara tenements, directly and through joint ventures.”

The growing excitement around the gold potential of the Pilbara was ignited by Canadian-listed vehicle Novo Resources just three months ago.

Novo has been unearthing a steady stream of gold nuggets from conglomerate rock at its Purdys Reward joint venture just south of Port Hedland, with the company drawing comparisons between the mineralisation and the world-beating Witwatersrand gold fields of South Africa.

The company’s shares have rocketed from C83c each in mid-July to a fresh high last week of $C6.70. Its market capitalisation now sits at just under $C900 million ($921m).

The surge has also rubbed off on a bevy of locally listed explorers. Novo’s joint venture partner Artemis Resources has more than quadrupled since July, while De Grey Mining spiked 150 per cent last week after it revealed it had unearthed similar gold nuggets from its Pilbara ground.

De Grey is now in a trading halt pending a capital raising, with market whispers suggesting a single party could be eager for most if not all of the junior’s placement. Novo may well be keen on a chunk of De Grey, given it already took a position in a recent $10m equity raising by another Pilbara gold explorer Calidus Resources.

Shares in Kairos Minerals have also soared thanks to its proximity to Purdy’s Reward, jumping from 1.9c to 7.2c in the space of a week.

The gold rush has now created well over $1 billion of market value, even though there hasn’t yet been a single drill hole into the relevant prospects.

Fortescue has expressed interest in exploring for gold, copper and lithium across its Pilbara acreage, and in new jurisdictions.