Alicanto raises $6m for ‘aggressive’ copper drilling in Sweden
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Special Report: Alicanto Minerals (ASX:AQI) is cashed-up for an aggressive new drilling program at its Greater Falun project to follow up on current drilling that has already returned strong results.
Initial holes from the ongoing 4,000m program, which is 40 per cent complete and expected to be finished by the end of December, had intersected visual sulphides including chalcopyrite (an important copper ore) at the Green Mile and Heden targets.
Funding for the planned 20,000m program will come from share placement that shows Alicanto has received firm commitments from institutional and sophisticated investors for $6m worth of new shares priced at 13c each.
The new drill program is scheduled to start in early 2021.
“The strong demand for the placement reflects the growing recognition of the huge potential of Greater Falun, the strength of the initial drilling results and its location in a tier-1 jurisdiction,” managing director Peter George said.
“Given what we have seen in the drilling, as well as the highly promising targets not yet tested, we want to keep building on the great work undertaken so far.
“The proceeds of this raising will allow us to prepare that program and begin drilling early in the new year.”
Greater Falun is in Sweden’s Bergslagen region, which hosts world-class base and precious metals projects such as Boliden’s Garpenberg mine, and Lundin’s Zinkgruvan mine.
The now shuttered Falun mine in Bergslagen produced 28 million tonnes of high-grade copper-gold polymetallic ore with high-grade by-products of silver, zinc and lead.
Alicanto’s current drilling program has already returned some intriguing results such as a massive skarn of high-grade copper sulphide material at the Heden East target and visual disseminated sulphides observed at the Green Mile prospect.
At Heden East, drilling had intersected 2.85m of massive pyroxene pro-grade skarn with bubble-like features of chalcopyrite copper and pyrite, including 1.02m of 5-10 per cent sulphides, from 69.95m.
Meanwhile, the western-most hole at Green Mile intersected strong alteration between 68m and 195m downhole that included weak (0.5 per cent) disseminated visual chalcopyrite and pyrite between 68.4m and 78.7m.
These results have no doubt inspired the company to mobilise a second diamond drill rig to the Heden target to continue testing the residual gravity and magnetic anomalies that it detected recently along with the upcoming 20,000m program.
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.