White Cliff Minerals (ASX:WCN) is continuing to cash up exploration efforts at its gold and base metal project in the Kyrgyz Republic and Western Australia by extending a fundraising drive initiated earlier this month with a share purchase plan (SPP).
The SPP will be available on the same terms as a recent oversubscribed placement, which generated A$1.2 million for exploration at a price of $0.006 per share to professional and sophisticated investors.
This included 1 free attaching option exercisable at $0.02 on or before December 31, 2017 for every 2 shares subscribed. White Cliff is currently trading at $0.007.
As with the share placement, the SPP is aimed at funding further drilling at the Aucu gold prospect in the Kyrgyz Republic, the Merolia nickel-copper project and the Ironstone gold project - which are both located in Western Australia.
Investor interest in the company’s exploration success at Aucu was demonstrated on September 1, when the identification of abundant visible gold at the site sent shares flying 83% to a 12-month high of $0.014.
Previous drilling at Aucu has delivered 1 metre at 23.1 grams per tonne gold from 47 metres, and WCN’s existing Aucu gold resource at the prospect totals 156,000 ounces at 4.2 grams per tonne gold from surface.
Upcoming drilling to be funded by the SPP is expected to contribute to an updated Aucu resource.
Aucu is part of the larger Chanach copper-gold property, which boasts a 10 million tonne resource at 0.4% copper for 156,000 tonnes of copper. An exploration target has been set at the site of 80,000 tonnes of copper.
Drilling and trenching from 2009-2013 at the Chanach porphyry deposit has identified widespread copper and gold mineralisation from surface over an area of 500 metres by 600 metres.
The deposit is open in all directions and extensive copper results from surface trenching outside the area drilled to date indicate that the size of the mineralisation can be substantially increased.
Analysis
White Cliff’s fundraising moves are significant because they allow the company the ability to expand planned drill programs on its projects.
Early signs have suggested major potential at Aucu, with gold mineralisation visible at surface, open along strike and at depth.
Initial exploration hints at Merolia southeast of Laverton have indicated favourability for massive nickel sulphide deposits.
White Cliff’s Laverton gold holdings, including Ironstone, are located in the core of the structurally complex Laverton Tectonic zone, immediately north of the 8-million-ounce Wallaby gold mine.
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