Dome Gold Mines has reported a significant construction sand resource at its Sigatoka project in Fiji and is progressing its feasibility study, supported by a proposed $7 million convertible note raise.
- 19.9 million tonnes construction sand resource at Kulukulu South
- Feasibility study progressing with site tests and hydrology drilling
- Proposed $7 million convertible notes fund raising underway
- Exploration focus on Nadrau copper-gold project with airborne surveys planned
- Cash position low at $10,000 with ongoing exploration expenditure
Sigatoka Project Resource Update
Dome Gold Mines Limited (ASX, DME) has delivered a pivotal update on its Sigatoka heavy mineral sand project in Fiji, revealing a new construction sand resource estimate of 19.9 million tonnes at the Kulukulu South deposit. This estimate, compiled by SLR Consulting Pty Ltd, highlights sands with high silica content and excellent durability, comparable to well-known Australian dune systems. The resource forms a critical component of Dome's broader Sigatoka ironsand project, which previously reported a total iron sands resource of 189.3 million tonnes.
Feasibility Study Progress and Operational Preparations
During the December quarter, Dome advanced its feasibility study with site testing focused on pit design, material transport logistics, and hydrology drilling to secure fresh water for processing. These activities are foundational steps toward securing a mining lease and moving the project closer to production. The company anticipates continuing this work into the March 2026 quarter, underscoring its commitment to methodical project development.
Capital Raising to Support Development and Exploration
To fund these initiatives, Dome has proposed a convertible note offering to raise up to $7 million. The capital will support the completion of the Sigatoka feasibility study, airborne geophysical surveys over the Nadrau copper-gold project, and the recruitment of senior technical and marketing personnel with relevant industry experience. This fundraising effort is critical given Dome's modest cash balance of $10,000 at quarter end and ongoing exploration expenditures totaling $148,000.
Exploration Outlook Beyond Sigatoka
Beyond Sigatoka, Dome is preparing to accelerate exploration at its Nadrau tenement, where previous results suggest potential for porphyry copper-gold and high-grade gold-silver vein systems. Planned airborne geophysical surveys aim to identify drill targets, capitalising on rising metal prices that enhance the project's value. No exploration activity was reported for the Ono Island gold-silver project during the quarter.
Financial Position and Governance
Financially, Dome remains in a tight position with limited cash reserves but has access to unsecured loan facilities totaling $5.6 million from multiple lenders, maturing in late 2027. The company’s board, led by Chairman John V McCarthy, continues to oversee exploration and development activities with a focus on advancing the Sigatoka project toward production readiness.
Bottom Line?
Dome’s next moves on feasibility completion and successful fundraising will be decisive for its Fiji mining ambitions.
Questions in the middle?
- Will Dome secure the $7 million convertible note funding as planned?
- What is the expected timeline for completing the Sigatoka feasibility study and mining lease application?
- How will rising metal prices impact the valuation and exploration strategy for the Nadrau project?