Photo: Gold from ABM Resources' Old Pirate tenements (Caddie Brain) Depressed gold prices aren't deterring junior explorer ABM Resources, which has commenced mining at its Old Pirate tenements in the Tanami Desert of the Northern Territory.
It's invested $5 million to construct a trial mine that is expected to produce 3,000 ounces of gold over the next two months.
Managing director Darren Holden says by financing the operation itself, the company will be more resilient to fluctuating gold prices.
"If anything, it's proven to us that this is the best way to go about developing a project like this," he said.
"Companies that have got into debt to build their mine, anticipating a certain gold price, will be the ones finding things a little bit tricky.
"Because we're doing it in a staged-process in building it up, we can do that out of our own bank account.
"We're not looking at going into debt, which will help us go through these various cycles."
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