White Cliff Minerals Ltd (ASX:WCN) has received required approvals to drill at the Ironstone gold prospect, within the Merolia gold project located near Laverton in Western Australia.
The 2,000 metre air-core and hammer drilling will target the 240 metre x 180 metre gold soil anomaly and is to commence later this month.
The anomaly occurs 190 metres west of recent and historical drilling that intersected 4 metres at 5 g/t gold and 0.3 metres at 25 g/t gold.
Todd Hibberd, managing director, commented: “The upcoming drilling is the culmination of six months of soil sampling and detailed exploration that has identified substantial gold anomalies at Ironstone, Burtville East and Comet Well.
“The gold anomaly at the Ironstone gold prospect is substantial and very high grade. We believe the Merolia project has great potential for a major gold discovery and this drill program is the first phase of a broader exploration strategy aimed at delivering on that potential.”
Background
White Cliff is advancing its 89% owned Aucu gold deposit located in the Kyrgyz Republic and its 100% owned Merolia gold project located near Laverton, Western Australia.
Aucu hosts a resource of 1.15 million tonnes grading 4.2 g/t gold for 156,000 ounces of contained gold at a 1.0 g/t cut off grade.
Drilling has discovered significant surface expressions of visible gold along strike from this resource including 8 metres at 55.2 g/t gold and 4 metres at 59.9 g/t gold.
Merolia hosts the Ironstone, Comet Well and Burtville East gold anomalies.
Historical drilling intersected substantial mineralisation including 5 metres at 33 g/t gold, 2 metres at 6.65 g/t gold and 3 metres at 5.3 g/t gold.
Most recently, White Cliff sampled gold grades of up to 38 g/t gold from surface rock piles at the Burtville East gold prospect.
SPP currently open
White Cliff opened its share purchase plan (SPP) recently, which will raise up to $1.25 million through the offer of 166.6 million shares priced at $0.0075.
The SPP follows the recent completion of an oversubscribed $1.5 million share placement to professional and sophisticated investors.
The SPP offer is underwritten up to the value of $500,000.
SPP shares will come with a 1:3 free attaching option exercisable at $0.013 and expiring on 31 December 2018.
The SPP will close on 2 December, 2016.