Stavely Minerals (ASX:SVY) has received a vote of confidence from its Victorian drilling contractor Titeline Drilling Pty Ltd, which has agreed to subscribe for up to $2 million worth of shares.
Under the agreement, the company has the option to settle monthly drilling charges by way of 50% cash payment and 50% by way of offset of the price of subscription application for shares.
The subscription price for each subscription application made will be based on the lower of a 5-day and 10-day VWAP of Stavely Minerals’ shares as at the date of each application.
Funds raised will be used to fund drilling.
Ballarat-based Titeline has provided drilling services to Stavely at both its Ararat VMS and Stavely Porphyry Copper-Gold Projects since the company’s inception.
The recently-minted company had recently intersected up to 5 metres at 1.38% copper, 0.25 grams per tonne gold and 11.8g/t silver at the Junction prospect of the Stavely project.
Drilling at the Thursday’s Gossan Prospect has returned 3 metres at 1.36% copper, 31.2g/t silver and 343ppm molybdenum.
Thursday’s Gossan has an Inferred JORC Resource of 28 million tonnes at 0.4% copper
Ararat has an Inferred Resource of 1.2Mt at 2% copper, 0.5g/t gold, 0.4% zinc and 6g/t silver hosted in Besshi-style VMS.
The Degrussa deposit is also considered a Besshi-style VMS.
Recent drilling has returned 5 metres at 2.1% copper, 0.56g/t gold, 0.48% zinc and 9g/t silver, 3 metres at 2.64% copper, 0.17g/t gold, 0.31% zinc and 3g/t silver as well as 1 metre at 5.89% copper, 0.55g/t gold, 2.31% zinc and 17g/t silver.
Ararat remains open at depth and along strike.
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