Gold Mountain secures $2.5m to fund ongoing Wabag exploration
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Gold Mountain’s flagship Wabag project in Papua New Guinea has received further validation from investors, who have committed to a $2.5m share placement.
The funds will be raised through the issue of shares priced at 4c each, with the first $1m being received before the end of April and the balance expected by 15 June this year.
That the placement was made close to the company’s monthly average share price is further evidence of investor confidence.
Proceeds from the placement will be used by Gold Mountain (ASX:GMN) for general working capital which primarily supports its ongoing drilling and sampling programs at Wabag.
“I am thrilled and thankful to the existing shareholders and the new investors who continue to demonstrate a strong level of support for GMN and I look forward to our continued exploration program at Wabag,” chief executive officer Tim Cameron said.
In March, the company made the widest copper-molybdenum intersection to date at Wabag, with hole MCD008 returning a 240m zone grading 0.1 per cent copper and 88 parts per million (ppm) molybdenum from a depth of 279m, with individual 1m intervals assaying up to 0.32% copper, 3000ppm molybdenum and 1.68 grams per tonne (g/t) gold.
Earlier rock chip samples taken from the nearby Lombokai Creek prospect identified skarn mineralisation in outcrops of the northern margins of Wale Batholith, with seven of 10 samples assaying above 0.1% copper and one sample coming in at 10% copper. Two other samples recorded 1.36 g/t gold and 73 g/t silver, respectively.
Gold Mountain is also waiting on the results of MCD009, which intersected a tonalitic porphyry in the top 309m of the hole along with a strongly potassic altered micro-diorite from about 309m to 637m.
Initial reconnaissance surveys at the Mt Wipi prospect have also returned intriguing results, with rock chips returning up to 9.64% copper, 1.96 g/t gold and 100 g/t silver within a 3km long x 1km wide area while channel samples returned a top hit of 5m grading 2.57% copper, 0.53 g/t gold and 33.56 g/t silver.
Gold Mountain has previously stated that these results, in conjunction with anomalous stream sediment samples and mapping, have defined intrusives and skarns that highlight strong exploration potential at the prospect for the location of a large mineralised system.
Wabag is located within the elephant country of the Papuan Mobile Belt – an area rich with mineral deposits including world-class mines such as Grassberg, Ok Tedi and Panguna as well as being just 70km from the 24Moz Porgera gold mine.
The company plans to identify and drill targets at Mt Wipi on the back of recent soil sampling.
This article was developed in collaboration with Gold Mountain, 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.