Great Boulder Resources Ltd (ASX:GBR) will accelerate drilling at Mt Venn Copper-Nickel-Cobalt Project in Western Australia after securing commitments to raise $2.5 million in a placement.
The funds will enable the company to drill the Eastern Mafic complex where numerous large bedrock conductors consistent with massive sulphide mineralisation have been identified.
Extensional drilling will also be fast-tracked at the Mt Venn discovery ahead of resource definition drilling.
READ: Great Boulder Resources closer to finding source of Mt Venn’s copper-nickel-cobalt
The oversubscribed raising was priced at 27 cents per share, equal to the last closing price on May 17, 2018, with about 9.26 million shares to be issued.
Shares are up 11% today to 30 cents.
Pleased with support
Managing director Stefan Murphy said the company was extremely pleased with the level of support received in the placement.
“Great Boulder is now fully funded to execute its drilling program at Mt Venn and the Eastern Mafic complex.
“Results from the ground moving-loop EM (MLEM) survey have confirmed large bedrock conductors consistent with a massive sulphide source at the Eastern Mafic complex.
“We look forward to receiving results from the remaining MLEM survey shortly so we can plan our maiden reverse circulation (RC) and diamond drill program at the Eastern Mafic.”
Great Boulder discovered copper-nickel-cobalt sulphide mineralisation at Mt Venn in late 2017 and continues to grow the mineralisation footprint.
The Mt Venn project is part of the broader Yamarna project in the Eastern Goldfields.
Drilling at Mt Venn
About 4,000 metres of RC and diamond drilling will be scheduled at Mt Venn.
The drill plan will be finalised after the company receives final assay results from recent drilling and down-hole EM survey, scheduled to be completed in mid-June.
READ: Great Boulder to dig deeper at Eastern Mafic complex of Mt Venn copper-nickel-cobalt project
At Eastern Mafic complex ground MLEM is underway, focused on the priority airborne EM anomalies.
Initial results have identified numerous large bedrock conductors that show an EM response consistent with massive sulphide mineralisation and a strong correlation with anomalies identified in an airborne EM survey.
A 1VD Magnetic image showing elevated copper-nickel-cobalt in red.
More than 30 late-time conductors were identified in the airborne survey over a 4-kilometre by 1.5-kilometre trend.
Maiden Eastern Mafic drilling
Once the MLEM survey and geophysical modelling of conductor plates are complete, placement funds will be used for a maiden RC and diamond drill program of about 5,000 metres.
Great Boulder is also progressing metallurgical test work on a composite sample from Mt Venn.
Cleaner test work on the bulk copper concentrate has commenced and additional leach tests will start shortly.
Following production of a bulk liquor, refining test work to produce copper, nickel and cobalt sulphide and sulphate products will start and is scheduled to be completed in late July.