ferret's stock to watch: hibernia gold limited

Ferret's Stock to Watch: HIBERNIA GOLD LIMITED
08:15, Tuesday, 15 March 2005

AUST MAY SOON HAVE ITS FIRST MOLYBDENUM MINE AS PRICES SOAR

Sydney - Tuesday - March 15: (RWE Australian Business News)
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OVERVIEW
********

Hibernia has been one of the "hot stocks" in the past week,
culminating in a trading halt on Friday.

It was up 17c for the two days before the shares were suspended.

The company subsequently disclosed it had been busily seeking a
home for 13.5 million shares placed at $1.40 each.

The company was allowed back onto the list yesterday after
releasing all the details to the ASX.

They showed Hibernia Gold had executed subscription agreements
that secure the funding to rapidly advance the Spinifex Ridge molybdenum
project in Western Australia to a development decision.

Hibernia has agreed, subject to shareholder approvals and final
investor legal due diligence, to raise $18.9 million predominantly from
North American institutional investors.

Following the placement, Hibernia will have 44.5 million
securities on issue (which includes 14.9 million unexercised options)
and $19 million in cash.

The company has specifically targeted major institutional
investors in the North American capital and financial markets.

These markets have traditionally provided financing for the
development of large scale molybdenum deposits.

The equity financing substantially changes the dynamics of the
company taking it from a junior explorer to a potential developer of a
large-scale molybdenum mine and coincides with continued strong world
molybdenum prices.

The company has adopted an aggressive yet pragmatic timetable
designed to ensure it can capitalise on the current favourable world
economic conditions that encourage new mine development.

International contract engineering and metallurgical firms will
be engaged to provide the level of technical quality and integrity
demanded by international financing markets.

The company will launch an immediate 20,000-metre diamond
drilling exploration program aimed at upgrading the Spinifex Ridge
resource and provide material for detailed metallurgical test work and
geotechnical data for mine planning.

Hibernia aims to deliver a bankable feasibility study prepared
in conjunction with internationally recognised mining consultants within
15 months from the commencement of the drilling program - its first at
the project.

SHARE PRICE MOVEMENTS
*********************

Shares of Hibernia yesterday rose 11c to $1.83. Rolling high for
the year has been $2 and low 40c.

At the end of January the company reported strong strong gold
intersections for Hibernia's NSW project

It has since accelerated plans to outline a mineable resource
after promising results from the latest drilling of the Dargues Reef
project near Braidwood in southeast NSW.

New drill results outlined today by Hibernia further outlined
two promising zones of strong gold mineralisation at Dargues Reef,
including Hole DREX8 31 metres at 4.6 g/t from 172 metres including 11
metres at 7.3 g/t from 184 metres; Hole DREX15 18 metres at 3.3 g/t from
196 metres including 4 metres at 8.2 g/t from 203 metres from diamond
drilling at the Big Blow zone.

Hibernia's managing director, Dr Derek Fisher, said the latest
program of diamond and RC drilling had extended the Big Blow and Main
zones to depth and along strike.

"The results from Big Blow show that it is a broad, very steeply
plunging zone that has now been extended beyond 220 metres in depth," Dr
Fisher said.

"The Main Zone, from latest drilling, is also proving to be
generally a narrower zone but still with excellent grades," he said.

"It sits adjacent to the wider Big Blow zone and the
characteristics of both zones appear to be very attractive for
underground mining," Dr Fisher added.

Main Zone intersections include: Hole DREX8 1 metre at 8.9 g/t
from 210 metres, Hole DREX15 2 metres at 9.7 g/t from 231 metres, Hole
DREX19 2 metres at 11.5 g/t from 51 metres and 6 metres at 4.5 g/t from
60 metres.

BACKGROUND
**********

Hibernia Gold Limited is a metals exploration company with a
portfolio of gold and molybdenum exploration projects in New South Wales
and Western Australia.

The admission of Hibernia Gold Limited to the official list of
the ASX in March 2004 was an outstanding success, raising $1.4 million
through the issue of seven million ordinary shares.

Hibernia began its listed life armed with over $2 million in the
bank to fund a focused exploration campaign on its greenfields gold
projects in eastern Australia.

The company has a philosophy of actively seeking resource
projects that offer an opportunity for early advancement to development
and positive cash flow.

Through its exploration office in Orange, Hibernia is actively
focusing on the development of its highly prospective gold targets in
NSW.

On listing, Hibernia also had some additional molybdenum and
tantalum assets.

In March/April 2004 Hibernia secured an option agreement over
the world-class Spinifex Ridge molybdenum project in the Pilbara region
of Western Australia.

The project complements the company's existing NSW molybdenum
properties, greatly strengthening its corporate strategy and establishes
a substantial foundation to exploit a revaluation of molybdenum on the
world's metals market.

The progression of the company's molybdenum strategy has become
a substantial part of its ongoing project development.

ENDS

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I don't hold HIB