Liontown Resources (ASX: LTR) has raised A$1.1 million after allotting the shortfall of shares from its recent non-renounceable rights issue, which was fully underwritten by Bell Potter Securities.
The proceeds from the entitlement offer, together with existing cash reserves, will primarily be used to advance the company’s Jubilee Reef Gold Project in Northern Tanzania.
The Jubilee Reef Project is located in the Lake Victoria Goldfield, where Liontown is currently earning up to 75% equity in the project via a joint venture with Currie Rose Resources (TSXV: CUI).
The Lake Victoria Goldfield hosts granite/greenstone terrain similar to the Eastern Goldfields of Western Australia, and comprises a plus-50 million ounce gold endowment.
The region features world class, above 10 million ounce gold deposits and established infrastructure.
Drilling during 2011 and 2012 from the Masabi Hill and Shangaza/Panapendesa prospects has confirmed the potential for economic mineralisation.
More recent drilling has returned outstanding results, highlighting the potential for a large-scale gold system at Masabi Hill.
Masabi Hill shows multiple gold zones with intersections of up to 62 metres at 2.4 grams per tonne (g/t) gold from the Discovery (Central) Zone and up to 74 metres at 1.8g/t gold from the Southern Zone.
The gold anomalism remains open, with the potential for a large gold system with multiple lodes.
Around 11,500 metres of drilling has been completed since the joint venture’s inception in 2011, with multiple priority gold prospects and mineralised zones identified.
Mineralisation has been drilled so far over 600 metres of strike and 600 metres of width, and the system appears to be shallow with significant growth potential. The majority of the Masabi granitoid remains untested.
Liontown is planning 5,400 metres of reverse circulation drilling to further define strike and dip extensions of substantial intersections at the Masabi Hill prospect, as well as following up on other known targets.
Around 9,000 metres of aircore drilling is also proposed which will further define the extent of gold mineralisation across the broader Jubilee Reef Project and identify further reverse circulation drilling targets.
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