Dundas Minerals Ltd (ASX:DUN) is raising $1.6 million to continue exploration at its Central exploration target in 2023 (subject to obtaining requisite permitting) and for a maiden drilling program at its Matilda South prospect in early 2023.
Matilda South is now fully permitted and ready to drill.
The company has firm commitments from professional and sophisticated investors to subscribe to a placement of four million new Dundas Minerals shares at an issue price of $0.40 per share.
Dundas Minerals managing director Shane Volk said “securing these additional funds places the company in a sound cash position to undertake an initial drilling program at Matilda South and continue testing early prospectivity at Central.”
Use of funds
Dundas is exploring for nickel, copper and gold in the prospective Albany-Fraser Orogen, Western Australia.
Funds raised from the placement will be used for:
- Matilda South drilling program (Q1, 2023).
- Central drilling program (2023).
- Geophysics at Central-Northeast and Matilda South.
- General working capital.
“At Matilda South, drilling costs will be co-funded by the Western Australian Government to a maximum of $180,000 under Round 25 of its Exploration Incentive Scheme (EIS), whereby drilling and reporting must be completed by May 31, 2023. EIS co-funding of $220,000 (Round 26) has also been awarded for drilling at Central, Volk said.
“The 12-month drilling window for Round 26 commences on December 1, 2022. Dundas Minerals is aiming to complete the first of two EIS co-funded drill holes at Central during December 2022.”
Central exploration drilling
Diamond drill hole three (22CEDD003) is nearing the targeted depth and visual results will be announced following completion of the hole.
Assay results from diamond drill hole one (22CEDD001) have been prioritised with DUN expected to be received towards the end of November 2022.
The hyperspectral scanning of hole one drill core is expected to be completed by the end of this week. Results from this work will be announced once they have been received and analysed, this will likely be during December 2022.
Drill core from diamond drill hole two (22CEDD002) has now been cut in Kalgoorlie and submitted for assay. Assay results from this hole are also expected during December 2022.
An electromagnetic (EM) down-hole survey crew has been secured and is expected at Central towards the end of November 2022. Results from the surveys will be used to plan the first of two EIS co-funded drill holes.