Great Northern raises $3m to fast-track Camel Creek drilling
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A $3m raising will be used to drill ‘Camel Creek’ and ‘Big Rush’ – two projects with potential to host massive gold systems.
Great Northern’s (ASX:GNM) flagship Queensland assets include the mothballed Golden Cup, Camel Creek and Big Rush gold mines, which produced a combined +160,000oz at an average grade of 1.9 grams per tonne (g/t) in the 90s.
These projects had never been systematically drilled at depth, and that’s where there’s potential for some big gold systems to be defined.
The new shares under the placement and rights issue will be issued at $0.01 each, representing a small discount to the volume weighted average price over the last 15 trading days.
Cash raised will be used to systematically drill test the Camel Creek gold project over ~2km of the total ~3.3km of strike.
“The surface has only been scratched, and from what we know about this style of gold deposit is that it should continue to great vertical depth,” Great Northern managing director Cameron McLean previously said.
“We now need to drill the entire gold system.”
A maiden resource estimate is expected later in 2021.
The funds will also allow for additional drilling of ‘Big Rush’, where the resource was recently increased 200 per cent to 154,000oz.
Around 75% of the resource sits in the indicated category, with the balance inferred.
Additional non-classified mineralised areas exist outside the resource area, highlighting the potential for further mineral resource growth.
Further drilling is planned for the project in 2021 with a focus on drill testing beneath the northern pit, where a number of significant intersections remain to be tested at depth.
This article was developed in collaboration with Great Northern 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.