Alicanto raises $3.15m to drive exploration at historical Falun mine
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Investor confidence has ensured that Alicanto is funded to carry out a comprehensive exploration campaign to test a large potential mineralised system within its Falun project in Sweden.
The company has received firm commitments from existing shareholders as well as new international and domestic investors for a $3.15m share placement priced at 3.5c per share.
Alicanto Minerals (ASX:AQI) intends to use the proceeds from the placement to explore the major mineralised system at Falun with over 10km of mineralisation horizon where multiple high priority targets have already been identified.
Recent drilling had returned assays of up to 744 grams per tonne (g/t) silver, 32.4% zinc and 1.9% copper at the Skyttgruvan target along the mineralised trend from the historical Falun mine, which produced 28Mt at 4% copper, 4g/t gold, 5% zinc, 2% lead and 35g/t silver.
“We have made some excellent progress at Falun on the back of very limited investigations to date. The work we have done is supportive of our concept that the historical Falun mine is only a small part of a major mineralised belt stretching over at least 10km,” managing director Rob Sennitt said.
“The proceeds of the raising will enable us to refine and grow our high priority targets ahead of a major drilling program to test this view.
“We are confident that this systematic and comprehensive approach will maximise our ability to unlock the true value of this highly prospective corridor around what was historically a world class copper-gold mine.”
Recent successful drilling and due diligence investigations associated with the acquisition of the historical Falun mine have already identified a number of key zones of mineralisation for immediate follow-up.
The company also plans to carry out a significant electromagnetic survey over the area which will be the first modern application of surface electromagnetic techniques in the mine’s history.
This work will allow Alicanto to prioritise the best quality drill targets for follow-up diamond drilling.
Key areas of focus include:
(i) a series of gravity anomalies located along the 3.5km mine horizon that were found by high resolution gravity survey after closure of the mine and which have never been drill tested.
(ii) a step-out drill program at Skyttgruvan-Naverberg where Alicanto has already intersected Falun-style mineralisation with notable results such as 5.3m at 6.8% zinc equivalent (84g/t silver, 0.5% copper, 3.3% zinc and 1.2% lead) and 2.9m at 14.7% zinc equivalent (194g/t silver, 0.1% copper, 4.9% zinc and 7.6% lead). In particular focusing on an off-hole conductor detected by downhole electromagnetic survey
(iii) Alicanto is also developing a 3D model at the Falun mine and surrounds which is based on the results of a recently acquired drillhole database covering about 1,400 holes in the mine as well as the result of a trial mining program. From this data a number of high priority targets and unmined high-grade intersections have already been generated.
This article was developed in collaboration with Alicanto Minerals, 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.