Dalaroo Metals Ltd (ASX:DAL) earlier this week outlined plans to direct the proceeds of a A$2.5 million capital raising towards a 10,000-metre reverse circulation drilling campaign at the Bondoukou Gold Project in Côte d’Ivoire.
Chief executive officer John Morgan told Proactive that the placement was intended primarily to fund the upcoming exploration program, which was expected to begin shortly after the interview. He said the financing should cover the full campaign while potentially leaving some capital available for additional activities.
Morgan described the start of drilling as an “exciting phase” for Dalaroo and said the program would initially focus on the Woulo Woulo target. The prospect had been identified by combining geological mapping, soil-sampling results and magnetic data.
The first phase of drilling is expected to test the structure and orientation of the prospective system. Dalaroo would then use the information gathered to guide expansion towards additional targets situated to the north and south.
A key feature of the placement was the level of internal participation. Morgan said Dalaroo’s board, senior management and in-country advisers had committed close to A$1 million in aggregate. He described the participation as “fantastic” and said it reflected strong support from the team for the company’s exploration strategy.
The placement also attracted backing from new and existing investors, including West African investors with experience supporting mining companies operating in Côte d’Ivoire.
Dalaroo’s leadership has also been strengthened by the appointment of Bilal Ahmed as chairman. Morgan said Ahmed brought useful connections, capital-markets experience and strategic expertise through his involvement with Capital 62 and its backing of junior resource companies.
The principal near-term catalyst for investors will be the start and completion of the Bondoukou drilling campaign. A second potential catalyst will be the release of assay results, which Morgan indicated could begin arriving around the middle of the quarter.
Dalaroo completed geological work, soil sampling and drilling preparations at Bondoukou during the preceding quarter. The company also undertook limited soil sampling and desktop work on its Western Australian assets, alongside expansion work in Greenland.
Morgan said Dalaroo would now concentrate its operational efforts on Bondoukou, with the company’s other projects having received sufficient work for the year. The drilling results could provide important information on the project’s geological structure and help Dalaroo prioritise the next stage of exploration.
Interview highlights
- Dalaroo Metals Ltd (ASX:DAL) raised A$2.5 million to fund a planned 10,000-metre reverse circulation drilling campaign at the Bondoukou Gold Project in Côte d’Ivoire.
- The funding is expected to cover the full drilling program and may leave additional capital available for other activities.
- Drilling is due to begin at the central Woulo Woulo target, which was identified through geological mapping, soil sampling and magnetic data.
- The initial work will seek to determine the structure and orientation of the mineralised system before drilling expands towards nearby targets.
- Dalaroo’s board, senior management and in-country advisers committed close to A$1 million to the placement.
- Newly appointed chairman Bilal Ahmed is expected to contribute capital-markets experience, industry connections and strategic guidance.
- Work completed during the previous quarter included geological mapping, soil sampling and drilling preparations at Bondoukou.
- The company also conducted limited work across its Western Australian and Greenland assets.
- Bondoukou will be Dalaroo’s primary operational focus during the coming quarter.
- The RC campaign is expected to be completed during the quarter, with initial assay results anticipated around the middle of the period.
Proactive: Dalaroo Metals Ltd (ASX:DAL) is raising A$2.5 million to support its planned 10,000-metre reverse circulation drilling campaign at the Bondoukou Gold Project in Côte d’Ivoire. With me to discuss the campaign is Dalaroo Metals CEO John Morgan. John, good to see you again.
John Morgan: Good to be here.
Proactive: Let’s start with the raise. Talk us through the amount and where the funding will go.
John Morgan: It is a strong capital raise. We have raised A$2.5 million purely to fund our Bondoukou Gold Project, which is entering an exciting phase. Reverse circulation drilling is scheduled to begin within the next five to 10 days, so we are very excited about that.
The funding should cover the whole program and probably leave a little capital available for other activities as well.
Proactive: Let’s drill down into the campaign. What are you looking for from the program?
John Morgan: The campaign will begin at our Woulo Woulo target, which is our more central target and an area where we have already had encouraging results.
It was the first target identified by combining geological mapping with soil results, and it sits along the magnetic corridor. We are encouraged by that target.
The main purpose of the campaign is to establish the structure and orientation of the system. We will then begin expanding from there towards our other targets to the north and south.
We are very excited to get started.
Proactive: There is also strong backing for the program from the board, management and in-country advisers, all of whom have invested.
John Morgan: We have received fantastic participation from the board and our in-country advisers. We have raised close to A$1 million from that group alone, so it represents very strong support from the team.
Proactive: One of the investors is Bilal Ahmed, who has also just been appointed chairman. What does he bring to the company?
John Morgan: He brings a strong track record and a wealth of experience through Capital 62, which has backed several junior companies that have performed well recently.
He also brings valuable connections and strategic experience that should help us put together a successful campaign.
Proactive: You have also released your quarterly report today. What were the highlights of the past quarter, and what can investors expect in the September quarter?
John Morgan: The biggest highlight was Bondoukou, where we completed our geological work and carried out a successful soil-sampling campaign. We also began drilling-related preparations, which have positioned us well for the upcoming campaign.
We completed some background work on our Western Australian assets, including limited soil sampling and desktop studies.
In Greenland, we also carried out our expansion program.
During the coming quarter, all eyes will be on the Bondoukou Gold Project. Our other projects have received sufficient work for the year, so we will concentrate on Bondoukou.
We expect the reverse circulation drilling campaign to be completed during the quarter and should begin receiving assay results around the middle of the quarter.
Proactive: John, we look forward to speaking with you when those assay results come through. Thanks for your time, and have a good week.
John Morgan: Thank you.