Investors have backed Bryah’s plan to advance exploration at its Windalah copper-gold project by supporting its $1.43m placement.

Sophisticated and professional investors have made firm commitments to subscribe for shares priced at 2.7c each with Australian Vanadium participating in the placement to maintain its 4.97% shareholding.

Bryah Resources (ASX:BYH) will use proceeds from the placement to drill diamond tails at Windalah, which includes $140,000 of additional funding through WA’s Exploration Incentive Scheme, complete the Olympus EIS program, and fund its share of its manganese joint venture with OMH.

The placement comes as copper takes centre stage following BHP’s $8.4bn bid for mid-tier copper miner OZ Minerals, though the latter’s brutal dismissal of the $25/share bid has led some analysts to say that world’s largest miner would have to do better than that to get OZL shareholders moving.

While copper prices have slipped in recent months due to concerns about global economic growth, the long-term outlook is extremely robust as very little new supply has been defined in the past 10 years.

“With the continued support of existing shareholders and new investors Bryah will continue exploration at its Windalah and Olympus copper gold project where we have demonstrated potential for VMS mineralisation,” chief executive officer Ashley Jones said.

“We are delighted that funds raised will also allow us to co-contribute and retain the company’s 49% interest in the Bryah Basin OMH/BYH manganese joint venture, which continues to develop into a near-term production opportunity.”

Copper opportunities

Bryah recently wrapped up a nine-hole reverse circulation drilling program at Olympus, which has a long strike and a number of recognised pathfinder elements that are remarkably similar to the soil anomaly at Windalah.

This is supported by geological mapping and rock chip geochemical sampling while rock chip samples have uncovered a suite of elements typical of high sulphidation volcanogenic massive sulphide deposits, also similar to Windalah.

Upcoming work under the EIS program includes downhole electromagnetics, hyperspectral and geochemical analysis.

Windalah occupies the same stratigraphic position as the historical Horseshoe Lights deposit just 13km to the north.

Previous drilling by the company has already intersected sulphide stringer mineralisation that is interpreted to be distal or ‘cooler’ temperatures at the time of emplacement – a sure sign that the company is in a volcanogenic massive sulphide system.

The upcoming deep diamond drilling program – carrying on from the RC pre-collars – will take the company closer to the ‘hotter’ zone that may potentially host copper-gold mineralisation.



This article was developed in collaboration with Bryah 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.