Aldoro puts pedal to the metal at Narndee after second massive sulphide hit
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Aldoro Resources will hit the accelerator on drilling at its flagship Narndee Igneous Complex after its shares rose on the second massive sulphide hit at the priority VC1 target in days.
It came as Aldoro Resources (ASX:ARN) revealed plans to expand the scope of its current drilling at Narndee two-fold from 5000m to 10,000m, backed by a $2.4 million placement.
While the placement was conducted at a discounted rate of 40 cents, Aldoro shares topped 50c this morning as investors digested news that diamond drill rigs were hitting the mark at Narndee.
After striking a 1.7m section of massive to semi-massive sulphides around 212m below the surface in the first drill hole at Narndee in a decade, Aldoro backed up that success with an even more startling result.
The second drill hole at VC1 hit a shallower target from 140.7 to 151.9m of magmatic sulphide mineralisation, with portable XRF readings confirming the presence of nickel and copper in the drill core.
That included 3.6m of massive sulphides from 146.9-150m and 150.2m-150.7m, mineralisation that contains more than 80% sulphide content.
Another 0.5m of semi-massive sulphide and 6.9m of veined, blebby and breccia sulphide was identified, with a third hole now set to be drilled 85m to the south to test thicker sulphide accumulation up plunge.
With drill rigs hard to come by as exploration spending across the commodities matrix remains strong, Aldoro has responded by ramping up its investment at Narndee.
A second rig will be drafted to site as it assesses the significance of the VC1 drilling with downhole EM and the start of a third diamond drill hole.
What was a 5000m program has been doubled in scale in response to Aldoro’s early success.
“Given the competitive drilling services landscape and the initial results from our first diamond drillhole at Narndee, NDD0001, the board has taken a proactive approach in moving to secure a second drill rig for the Narndee project and allow it to increase the current program to 10,000m,” chairman Joshua Letcher said.
“The company has also moved to bolster its funding flexibility with a $2.4 million placement which will, subject to results, allow it to increase the drilling program at Narndee beyond 10,000m.
“Upon completion of the placement, cash reserves will increase to circa $6.2 million with an additional $1.2 million receivable to come following completion of the Aurum Resources spin-off.”
The Aldoro board and placement manager Xcel Capital have shown plenty of confidence in the growing story at Narndee as well.
Directors Letcher, Lincoln Ho and Troy Flannery have subscribed for a combined $130,000 worth of new shares while Xcel has agreed to take its placement fee in shares at the placement price.
The second rig is expected to arrive at Narndee, 90km south-southwest of Mount Magnet, in September.
This article was developed in collaboration with Aldoro Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.