Major shareholders and directors back $5.5m placement ahead of Warriedar’s gold, base metals drilling blitz
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Warriedar Resources’ $5.5 million placement will unpin accelerated drilling in WA, designed to add to its already substantial 945,000oz gold resource and test some advanced base metals targets.
Warriedar Resources (ASX:WA8) Golden Range and Fields Find projects are just 3kms away from the renowned Golden Grove VMS camp in the Murchison, a region known for its significant reserves of gold and base metals.
The geological formations hosting the cluster of valuable deposits at Golden Grove continue southward into WA8’s project area, emphasising the rich potential of its tenure.
With 945,000oz gold already in the kitty the size of the prize along this 813sqkm ‘belt scale’ opportunity is substantial, the company says.
5,600m of drilling will begin the coming weeks targeting 10 high-potential base metal targets at Fields Find West, which offers “some of the best brownfield and geophysical targets” across the WA8 tenure.
These targets are proximal to significant ore-grade copper, gold, and other base metals intercepts, including the historical Warriedar copper mine where surface rock chip sampling returned 20.1% Cu.
The company will also look to add gold ounces to its near 1Moz resource base.
Notable targets include Rothschild, where H1 CY2023 drilling returned high-grade gold intercepts at depth and along strike from the existing mineral resource.
WA8 will continue drilling at Rothschild for the remainder of 2023, with a key focus of second half activities metallurgical drilling and test work along the Ricciardo corridor, where the Silverstone deposit cluster contains a combined resource of 476koz gold.
WA8 says positive results from this planned work would provide a catalyst for further drilling of multiple high-grade (+5 g/t Au) shoots in this area.
WA8 says it has secured binding commitments to raise $5.5 million through the issue of ~78.6 million shares at 7 cents/share, represents a discount of 12.5% to the last traded price and 16.0% to the 5-day volume weighted average price (VWAP).
Major shareholders Topdrill and Au Xingao Investment have thrown support behind the placement, while WA8 directors have also applied to participate, subject to shareholder approval at a general meeting expected to occur in Mid-November.
WA8 managing director and CEO Amanda Buckingham says support for the capital raising from both existing shareholders and new investors is strong endorsement of the exploration potential of its Golden Range and Fields Find Projects.
“Over the last 9 months, the Warriedar team has worked meticulously to set the business up for success,” she says.
“Following the acquisition of our WA projects, we quickly established a team of high-performing geoscientists, and we surrounded them with an experienced senior management and board.
“We have built strong relationships with our key contractors and optimised our exploration processes to deliver efficient and effective exploration targeting that is focused on new discoveries and Resource growth.”
This article was developed in collaboration with Warriedar 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.