Vital raises A$1m to step up activities in West Africa, Australia

JOHANNESBURG (miningweekly.com) – ASX-listed junior Vital Metals has raised about A$1-million to advance ongoing gold exploration activities in West Africa, where it recently commenced drilling at its 100%-owned Kollo gold project, in Burkina Faso, to in-fill and extend high-grade gold mineralisation.

The proceeds will also be used to accelerate drill testing at its Australia-based Elephant Creek gold prospect, which is located on a major regional geological structure, the Tulla Fault Zone, south of Vital Metals’ 100%-owned Watershed tungsten project, in North Queensland.

The gold explorer raised the funds through a heavily oversubscribed share placement of about 68-million shares at an issue price of 1.5c.

“This is an exciting time for Vital as we move quickly to unlock the value of our key gold assets at a time of strong investor interest in the gold sector,” said Vital Metals MD Mark Strizek, adding that both the West African and the Australian projects offer “significant exploration upside, leveraging off extensive historical work”.

The Kollo gold project is located in the heart of one of West Africa’s most prolific gold districts, which is attracting growing attention owing to recent exploration success and corporate consolidation activity.

A diamond drill rig has completed eight holes at Kollo for 1 214 m of drilling. The reverse circulation (RC) rig is currently awaiting final customs clearances and will be mobilised to site pending a final physical inspection.

The initial results from this drilling programme are expected in September.

Previous RC drilling at Kollo intersected significant gold mineralisation, which is developed for 6 km of strike along the north-east-trending Kollo Shear corridor.

Kollo is located about 50 km west of the currently producing Youga mine, bought in February for $25-million by MNG Gold. MNG also recently completed the acquisition of the high-grade Balogo project, located to the east of Kollo.