Shareholders and investors have provided strong support for Golden Mile’s $1.89m capital raising to fund accelerated drilling at its Quicksilver and Yuinmery projects.

The placement of 42.96 million shares priced at 4.4c was backed by existing shareholders, sophisticated and professional investors as well as further support from new cornerstone investor Rajiv Ramnarayan of Commodity Trading and Mining Investment Group Equentia Natural Resources.

It follows on shares in Golden Mile Resources (ASX:G88) soaring last week after diamond drilling returned the highest-ever nickel grades of 4.14% at the Quicksilver nickel-cobalt deposit near Lake Grace, Western Australia.

“We have had an exceptionally high level of interest in the capital raise as well as great support from our existing shareholders,” managing director Damon Dormer said.

 

Accelerated exploration and advancing testwork

Proceeds from the placement will be used to accelerate exploration of both nickel and primary (hard rock) rare earth elements at Quicksilver as well as highly prospective gold and base metal targets at the Yuinmery project in WA’s Murchison region.

The company’s earlier drilling at Quicksilver, which yielded the aforementioned top nickel grades, had indicated that the high-grade zones of the orebody could be directly transported and shipped without beneficiation.

Additionally, high-grade nickel and cobalt in the oxide zone might be an indication of potential disseminated nickel mineralisation within the untested primary zone.

Extra holes have already been added to the upcoming Phase 2 – Assays Ancillary program to test for REE mineralisation alongside the potential primary disseminated nickel mineralisation as they are located within the same area.

At Yuinmery, new information from successful aircore drilling in November 2022 combined with historical geochemical data and rotary air blast drilling data as well as recently acquired multiclient aeromagnetic data has resulted in the identification of the Yuinmery Trend, Happy Camper and Pirates Patch targets.

This review also recommended that follow-up drilling be carried out at the Elephant Reef, Ladies Patch and Hammerhead gold prospects which were upgraded by aircore drilling last year.

In addition to the accelerated exploration, funds will also be used for metallurgical testing of the Quicksilver oxide zones, which hosts the current Indicated and Inferred Resource of 23.6Mt grading 0.64% nickel and 0.04% cobalt.

 

 

This article was developed in collaboration with Golden Mile Resources, 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.

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