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Dateline well-funded to explore 813,000oz Colosseum gold mine as it loads up $1.1m rights issue
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Dateline Resources will be well stocked to ramp up its exploration efforts at the 813,000oz Colosseum gold mine in California after officially launching a $1.1 million rights issue today.
Coming off the back of a $2.7 million placement, the right issue comes with a shortfall commitment for $1m from Peak Asset Management, ensuring it will have cash in the bank to support drilling for gold and rare earths at the historic mine.
It comes less than a month after Dateline (ASX:DTR) announced a joint venture with US-based MW Sorter LLC, a deal which will deliver US$825,000 of a monthly basis as a treatment fee for processing ore from the London and Hock Hocking Mines at the Gold Links project in Colorado.
Dateline is reviewing plans to recommence production there under the JV agreement, ensuring cash flow on top of the capital raised in the $2.7m placement and $1.1m rights issue.
Processing utilising stockpiles from London is expected to restart at Dateline’s Lucky Strike Mill in mid-2023.
Opening March 20
The 1-for-12 non-renounceable rights issue will enable eligible Dateline shareholders in Australia and New Zealand to maintain their stakes by applying for a new share for each 12 they hold at an issue price of 2c per share.
The company is leveraged to continued exploration success at Colosseum, located in the Walker Lane Trend in East San Bernardino County, where it has identified a JORC 2012 compliant mineral resource estimate of 20.9Mt at 1.2g/t for 813,000oz of gold.
32% of those tonnes, or around 258,000oz, are in the highest measured category, with 322,000oz (39%) in the next highest, indicated.
Both categories have high enough drill density to be converted to reserves at the right gold price and mine plan, providing a great launching pad for a future production scenario.
The Walker Lane Trend hosts a number of major gold discoveries, including the 1.7Moz Mother Lode Deposit and the 6.5Moz Castle Mountain gold mine.
Work is also ongoing to outline Colosseum’s rare earth potential.
The project is located under 10km north of the Mountain Pass Rare Earth mine, one of the largest in the world outside China, with work aimed at identifying the source of mantle derived rocks associated with carbonatites at Colosseum.
Carbonatite rare earth deposits are the source of some of the largest hard rock rare earth mines in the world, including Mountain Pass and Lynas’ Mt Weld mine in WA.
This article was developed in collaboration with Dateline Resources (ASX:DTR), 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.
