JOHANNESBURG (miningweekly.com) – ASX-listed Adelaide Resources on Tuesday reported that its 100%-owned Barns deposit had an estimated mineral resource of 2.11-million tonnes, at 1.6 g/t gold for 107 000 oz at a 0.5 g/t cut-off grade.
Located 23 km north of the town of Wudinna on South Australia’s Eyre Peninsula, the Barns resource is classified into 380 000 t of indicated and 1.73-million tonnes of inferred resources.
The company now plans to complete metallurgical test work to establish gold recoveries, evaluate development options, and conduct exploration to increase the resource inventory.
Meanwhile, MD Chris Drown said in a statement that the company received commitments from investors to raise $816 050, before costs, to advance the Barns resource and Drummond exploration targets.
A total of 44.4-million ordinary shares, which is inclusive of 1.46-million incentive shares to participating brokers, will be issued within the company’s placement capacity at 1.9c apiece.
The funds raised under the placement will be primarily used to undertake metallurgical test work and assessment of development options for the Barns gold deposit.
This includes further exploration to potentially increase the resource inventory at Barns and the nearby gold prospects at the company’s 100%-owned Eyre Peninsula gold project. Funds will also be allocated to conduct the first ever drill testing of the large well-preserved epithermal gold-bearing vein system at the Bunyip prospect at the Drummond gold project, in North Queensland.
Edited by: Mariaan Webb
Creamer Media Senior Deputy Editor Online
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