• Killi Resources has raised $2m through a placement
  • Funds will be spent on a 10-hole program at the Kaa prospect
  • Drilling will begin this week, with the rig mobilised to site

 

Special report: Proceeds from a $2 million placement will be used by Killi Resources to drill its high-grade Kaa gold-copper target within the wider Mt Rawdon West project in Queensland.

Killi Resources’ (ASX:KLI) Kaa prospect sits within the 300km2 Mt Rawdon West project, 8km from the 1.8Moz Mt Rawdon gold mine in the historical Mt Perry mining district.

The district boasts a rich mining history with gold, copper and molybdenum mines located on the tenement that have laid dormant for the past 100 years.

Exploration results at Kaa in August highlighted a high-grade copper-gold structure at surface, extending from the historical Wonbah copper mine along the soil anomaly to the south-east.

This, coupled with assays from in-situ surface rock chip samples which returned 238 g/t gold and 21.1% copper, indicate the Kaa target to be a new, previously unrecognised epithermal mineral system.

 

10-hole maiden drilling program

Now KLI plans to carry out maiden drilling following the raise of $2m through a placement to new and existing shareholders.

The issue price of $0.10 per placement share represents an 8.3% discount to the 10-day VWAP at the company’s last closing price on 14 August.

A diamond drilling program will target significant IP anomalies identified beneath high-grade surface mineralisation of 238g/t gold, 7% copper and 907g/t silver.

Drilling will begin this week, with the rig mobilised to site and ground works completed.

The funds raised under the placement, along with existing cash will also allow an immediate follow-up program at Kaa if required, as well as an IP survey at the Baloo copper-gold-molybdenum target, south of Kaa.

 

Oversubscribed placement funds to double metres in the ground

“The placement was oversubscribed, which shows great interest from the wider market in the Kaa prospect and planned exploration programs,” KLI CEO Kathryn Cutler says.

“This provides additional support and flexibility for the maiden drill program planned at the Kaa target looking for a new epithermal gold-copper-silver system.

“Results of the IP Survey generated multiple chargeable and resistive high-priority targets, co-incident to high grade gold, copper and silver mineralisation over a 1.8km trend,” she says.

“These additional funds are marked to double the planned drill metres at Kaa, and to complete the IP survey at the Baloo target.”

 

 

This article was developed in collaboration with Killi 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.