PolarX Ltd (ASX:PXX) is preparing for a 3,000-metre drilling program at the Zackly East gold-copper skarn within its Alaska Range Project following a strongly supported $3.76 million placement.
The company aims to begin the drilling in four weeks using two drill rigs with the program of 15-20 holes expected to take around six to eight weeks.
Firm placement commitments have been received from sophisticated and professional investors to subscribe for about 99 million shares at an issue price of 3.8 cents.
SPP launched
PolarX is encouraged by the strong support which validates its strategy focused on Alaska and this has prompted it to also undertake a share purchase plan (SPP) to raise up to a further $1 million.
The SPP will be offered to eligible shareholders at the same issue price as the placement and is scheduled to close on Wednesday, July 8, 2020.
“Strong support”
Managing director Frazer Tabeart said: “We received strong support for the raising, particularly from existing institutional shareholders, who have increased their holdings.
“These funds allow us to immediately commence the mobilisation of people and drill rigs for the planned 3,000-metre core drilling program to test our best target: the near‐surface, high‐grade, gold‐rich Zackly East Skarn.
“The drilling results we achieved in previous seasons at Zackly East were exceptional and give us great confidence in the potential at this exciting prospect.”
Use of funds
While the primary use of the capital raising funds will be the Zackly East drilling, the company will also allocate funds for other exploration and pre‐development activities at the Alaska Range Project.
Zackly East program
The Zackly East Skarn occurs just 800 metres from the Zackly Main Skarn deposit where PolarX has outlined an inferred resource of 41,000 tonnes of copper, 213,000 ounces of gold and 1.5 million ounces of silver from surface.
This resource occurs over a strike length of 1,050 metres and the company is confident of adding to it.
Mineralised drill intersections to the east of the resource, along with geological mapping and trenching to evaluate the potential 600 metres in strike‐length of the Zackly East skarn, indicate that the resource inventory may be increased as a result of the planned drilling.
A program of 3,000 metres of drilling comprising 15‐20 shallow drill holes has been planned to evaluate a 500‐600 metre strike length of the structure.
Drilling will begin on the existing section containing holes ZX‐18020 and ZX‐18024 to determine down‐dip continuity.
Step out cross‐sections will be drilled on 50-metre and 100-metre centres with precise details to be finalised on a hole-by-hole basis using information gleaned from the previous drill holes.