Great Western Mining Corporation PLC (LON:GWMO) shares slumped in Tuesday after the explorer revealed unexpected findings and it raised £1mln in a share placing.
The company told investors that the M2-041, presently at a depth of 458 metres, intercepted intense hydrothermal alteration and mineralization where it expected to encounter the base of the M2-Sharktooth Dunlap caprock.
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It described the feature - which is said to comprise ‘multiply-silicified, quartz-magnetite, hydrothermal breccia - as being “unexpectedly thick” and said it appears “to have taken the place of, or is very likely above, the copper and gold-bearing diorite.”
Drilling is continuing in M2-041.
"We are very excited by the discovery of the highly anomalous hydrothermal breccia at M2,” said David Fraser, GWMO chief executive.
“Our geological team are very encouraged by observations made during core logging.
“We now await the first assay results from this breccia zone and will update shareholders as soon as practicable."
Placing and expanded drilling
The company has raised £1mln, with 77mln new shares being sold at 1.3p each to institutions and existing shareholders.
GWMO said the injection of funds will allow it to extend the current M2-Sharktooth drill programme. It now plans to drill up to two additional boreholes, supported by existing drill pads.
The aim is to further investigate the extent of the newly discovered hydrothermal breccia.
In Tuesday’s dealing, the GWMO share price was down 0.39p or 22.9% changing hands at 1.33p.