Perth based miner Avonlea Minerals (ASX: AVZ) has received firm commitments to raise $910,350 to further test high grade iron and base metal assays received at the company's exclusive Prospecting Licences in Namibia.
A total of 7,583,333 shares will be placed at an issue price of 12 cents each to sophisticated and institutional investors.
Investors may recall that exploration on the company's Namibian prospective license EPL 4129, unearthed multiple high grade magnetite rich zones at Hammerhead prospect. Additionally, there were promising base metal rock chip results.
Recent surface channel assay results included: 40m at 38% Fe, including 10m at 50% Fe, 40m at 37% Fe, and 30m at 31% Fe.
Grab samples were up to 50% Fe.
Avonlea’s four primary Fe prospects are Hammerhead, Bronzy, Nail and Tack. These prospects are located in the northern region of the 1000sq km Okatumba EPL 4129. The licence area is approximately 80 kms from the Namibian coastline and 120kms from the Kunene River (country border) in the north.
The presence of multiple zones of significantly higher grade Fe mineralisation occurred within the main body of the magnetite rich mineralised zone at the Hammerhead prospect.
Interesintly, high grade zones are open along strike.
Recent results also demonstrated potential for these prospects to host significant base metal mineralisation. Rock chip samples yielded 15.9% Copper and 414g/t Silver, 6.2% Copper, 41 g/t Silver and 988ppm Molybdenum.
Ongoing assessment of the Cu, Mo and Ag potential, will draw on the local knowledge of the artisanal miners (who mine for visible copper specimens (malachite/azurite/dioptase), so the Company can confirm the proximity and continuity of known and additional outcropping copper mineralisation.