Delecta’s $4m raising to complete its transformation into dedicated miner

Delecta is looking to complete its pivot into mining by raising between $3m and $4m through a public offering and changing its name to Moab Minerals.

This follows the company executing agreements in early May to acquire Nabberu Minerals – the owners of the Woodlands base metals and gold project in WA’s Gascoyne Province – and dispose of its Calvista adult products business.

Delecta (ASX:DLC) is now offering up to 200 million shares priced at 2c each to fund exploration on its new and existing projects as well as to support its reinstatement to trading on the ASX.

The offer opens on 1 July with an expected re-quotation on the ASX by 4 August under Moab Metals.

New projects and activities

The acquisition of Nabberu brings with it the 193km2 Woodlands project and an exploration licence application for the Mount Amy project.

Woodlands comprises one exploration licence in the Gascoyne, an emerging mineral province, at the western extent of the Jillawarra belt which also hosts the giant Abra lead-silver-gold-copper deposit about 75km to the east.

First phase base metals exploration at the project will focus on reprocessing and interpreting all previous geophysical surveys with further ground or drone geophysical surveys to be carried out if this previous work does not provide enough detail.

This will be followed by a field reconnaissance trip to assess all exploration targets, which will include validation of historical geochemical sampling, mapping of known gossans and rock chip sampling along strike of the exploration targets for multi-element geochemistry.

Delecta will then carry out a drill program with down-hole electromagnetic logging undertaken to check for off-hole conductors.

Concurrently, the company will resample and map the Geopeko “Anomaly 27”, which will then be followed-up with diamond drilling.

Soil sampling will be used to explore for a structurally controlled or shear zone-hosted gold deposit associated with hydrothermal variscite mineralisation in the south of the tenement.

The Mount Amy exploration licence application covers 155.34km2 in the Ashburton Basin about 1,050km north of Perth.

It is located at the northern extent of the Nanjilgandy Fault, the same structure that hosts the Paulsens and Mount Olympus gold deposits.

No subsurface exploration has been carried out at the project, though surface sampling has outlined a number of geochemically anomalous areas and historical rock sampling has returned anomalous base metal assays, which warrant further testing.

Initial exploration will be the undertaking of field reconnaissance to identify and map any outcrop which will be followed by regional-scale aircore drilling areas of previous gold-in-soil anomalism and areas of anomalous results from rock chip analysis.

If results from the first exploration phase are favourable, a second phase of drilling will follow to test the grade, thickness and depth extensions of mineralisation.

Existing projects not forgotten

Delecta will also carry out work on its REX, Speedway and Highline projects in the US.

REX covers 20.7km2 in Colorado and is prospective for uranium-vanadium mineralisation with historical exploration limited to areas of previous production and focused on uranium only.

Delecta will collate and digitise all available historical data before carrying out any fieldwork verification and validation of sample and drill locations and mapping of the Salt Wash Member and any accessible underground workings.

This will lead to an in-depth targeting exercise with all available drilling, sampling and geophysical data, followed by drilling of the highest priority targets.

Speedway covers 5.82km2 within the Silver Island Mountains of the Basin and Range Province in Utah and has mineralisation similar to the Long Canyon deposit about 40km to the north.

A review of all previous geophysical surveys will be undertaken with all identified geophysical targets to be mapped in detail along with a systematic geochemical sampling over the identified Pequop Formation and Ely Limestone.

Following the geophysical review targeting, a detailed drill program will be conducted based on the results.

Highline covers 0.37km2 of ground in Nevada’s Clark County that is prospective for copper and cobalt mineralisation from hydrothermal alteration.

Ongoing exploration will include detailed stratigraphical field mapping of the entire project area with a focus on locating and sampling the prospective Anchor Limestone unit before it carries out diamond drilling of the highest priority targets to assess the thickness and grade of any identified mineralisation.

This article was developed in collaboration with Delecta, 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.