Medallion cashed up for Ravensthorpe gold drilling
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Medallion has completed a $5.2m capital raising to fund aggressive exploration across its 1.37Moz gold equivalent Ravensthorpe project on WA’s south coast.
Existing shareholders picked up nearly $3.5m worth of shares under the pro-rata entitlement issue of one share priced at 16c for every six shares held while the remaining $1.7m was raised through the heavily oversubscribed shortfall offer.
The strong show of support places Medallion Metals (ASX:MM8) in strong position to push through some 10,000m of drilling targeting extensions to established mineral resources and priority near mine and regional targets.
Additionally, results from some 13,000m of drilling completed at Ravensthorpe will be incorporated into a resource update expected during the fourth quarter of 2022 while assays are pending over the coming weeks for a further 8,000m of drilling.
This is a rapid pace of growth given that the company had only just increased resources within the Kundip Mining Centre to 16.5Mt grading 2.6g/t gold equivalent for 1.37Moz of contained gold equivalent in June this year.
“I’d like to thank our shareholders, both new and existing, for their strong support of this capital raising,” managing director Paul Bennett said.
“We’re well funded and with drill rigs mobilising next month, we look forward to continuing to grow the resource and test the multiple near mine and regional discovery opportunities at the Ravensthorpe Gold Project.
“The recent interim resource update and ongoing drill results clearly show that well-funded exploration programmes, led by our capable and experienced team, will deliver results at the project.”
Medallion has already secured both a reverse circulation rig and a diamond rig to carry out the drill campaign over the rest of this year.
This will target extensions to the KMC resource as well as priority near mine and regional targets as the company moves to define a multi-million ounce resource at the Ravensthorpe project.
Notable targets including the Meridian prospect where previous drilling returned assays such as 3.5m at 17.45g/t gold, 0.26% copper and 3.12g/t silver from a downhole depth of 133m.
Work is also underway reviewing the data gathered during the 2021-22 drill program.
These include structural mapping and analysis, processing and interpretation of down-hole electro-magnetic (DHEM) and ground based Sub-Audio Magnetic (SAM) surveys, which will form the basis for planning future drill programs.
This article was developed in collaboration with Medallion Metals, 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.