White Cliff Minerals Ltd (ASX:WCN) has raised $2.64 million in a placement of 440 million new shares at $0.006 per share to professional and sophisticated investors through Hartleys.
There will be one attaching unlisted option exercisable at $0.015 on or before 15 December 2016 for every four shares subscribed.
Capital raised in the oversubscribed placement will be used primarily to fund the exploration and further drilling of the Aucu gold prospect and for general working capital.
Aucu has exhibited significant surface expressions of visible gold along strike from the company’s existing gold resource of 156,000 ounces at 4.2 g/t of gold from surface.
White Cliff’s managing director, Todd Hibberd commented: “The strong demand from new and existing shareholders demonstrates the growing awareness of the high grade gold potential at the Aucu gold project.
Funds raised pursuant to the placement will provide White Cliff with the funding required to complete its planned drill program of the high grade eastern upper gold zone at the Aucu gold discovery in the Kyrgyz Republic.”
“We remain very excited by the potential of the Aucu gold project, with the 2016 field season expected to deliver further significant drill results, demonstrating the exceptional scale potential of the project.”
Aucu gold deposit
The Aucu gold deposit is located in the Kyrgyz Republic, which is a democratic republic bordering Kazakhstan and China.
The company announced a maiden inferred resource for the Aucu gold deposit above a cut-off grade of 1 g/t gold of 1.15 million tonnes grading 4.2 g/t gold for 156,000 ounces of contained gold.
In 2015, drilling identified exceptional gold mineralisation east of this resource in the eastern upper gold zone (UGZ) over a strike length of at least 500 metres.
Results included 8 metres at 55.2 g/t gold and 4 metres at 59.9 g/t gold.
The average grade of the gold intersections across the eastern UGZ is 45 g/t gold and there are several lodes.
In addition, mineralisation at the UGZ outcrops at surface and remains open in both directions and at depth.
Overall metallurgical recovery of all mineralised zones discovered at Aucu is 99% with gravity recoverable gold averages of 88.6%.
Analysis
The oversubscribed placement is a testament to the upside case that investors perceive in White Cliff's Aucu gold deposit.
Aucu has a total of four mineralised systems with gold outcropping allowing for low cost test work and advantageous economic feasibility.
White Cliff is well positioned to explore for high grade gold intercepts at a deposit open at both depth and along its 3 kilometre strike.
There is good potential for the company to scale Aucu to one million ounces in 2016/17.
Metallurgy has proven to be excellent and the deposit is hosted in sandstone which will make for low energy and capital milling.
Aucu has a clearly defined exploration schedule through to Q2, 2017 which will produce strong news flow and drill results.
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