Meteoric Resources (ASX:MEI) has raised about A$720,500 through a share placement to fund drilling of its Tibooburra gold project in north west New South Wales.
Executive director – exploration George Sakalidis told Proactive investors that besides the current 6000 metre air blast drilling program, the proceeds will also be used to fund deeper reverse circulation drilling in April.
The company had last month started the air blast drilling program to define the extent of the 300 metre long open-ended zone of mineralisation at the New Bendigo deposit and test the extent of 1 kilometre-spaced gold intersections at Kink below shallow cover.
Sakalidis said the air drilling would be completed in about two weeks and that some samples had already been sent for laboratory testing though Meteoric had not received any results yet.
He added that while Meteoric had no resource estimates for Tibooburra at this stage, it was looking at some large gold targets there.
Sakalidis also confirmed the company would be focusing on Tibooburra in the near-term.
The targets at New Bendigo occur within a 4km-long gold anomaly and the air drilling is testing a 2.3 kilometre-long priority zone associated with gold diggings and/or soil covered areas within this anomaly.
At Kink the drilling will span the entire length of a 4.5 kilometre-long gold anomaly, bringing the total strike length to be tested to 6.8 kilometres. This is expected to provide immediate targets for deeper reverse circulation drilling.
Meteoric’s initial drilling had intersected shallow, high-grade gold mineralisation at New Bendigo including 20 metres at 5.22 grams per tonne (g/t) gold from 8 metres, and 4 metres at 11.33g/t gold from 36 metres.
Very little modern exploration has been completed at Tibooburra, with only two of the numerous vein systems identified in the district drilled previously, and no drilling below a depth of 60 metres.
Both the New Bendigo and Kink prospects, each undrilled prior to Meteoric’s initial program, occur in proximity to a mapped regional fault structure, the New Bendigo Fault, which extends for some 40 kilometres within the project tenements.
Meteoric may earn an initial 51% interest in the 450 square kilometres of tenements covering most of the Tibooburra goldfield by spending A$500,000 by late 2013 and may elect to earn up to a 75% interest by spending a further A$1 million by late 2016.
Following the placement of 11,084,614 shares priced at A$0.065 each to sophisticated, professional and experienced investors, Meteoric will have 85,113,865 fully paid shares and 27,504,727 contributing shares on issue and cash and liquid investments of $1.5 million after payment of costs.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/25553/meteoric-resources-cashed-up-for-deeper-drilling-at-tibooburra-gold-project-25553.html