Wednesday, 17 April 2013

Golden Goliath says drilling to resume at Las Bolas/Los Hilos; raises $1.3 mln in new funds

Drilling is to resume at Golden Goliath Resources’ (CVE:GNG) Las Bolas/ Los Hilos site on the location of a historic gold and silver mining camp in Mexico, the company announced today.
The Vancouver-based exploration junior received notice Wednesday that the Mexican subsidiary of Agnico-Eagle Mines (NYSE:AEM) (TSE:AEM), signatory to an earn-in option agreement for the property, has scheduled a resumption of drilling for early next month. 
Preparations for the start of the second year of the work commitment are already underway and the drill itself is expected on site by May 5th.
Golden Goliath is notable among juniors for reviving an old mining district covering an area that measures 15 kilometres by 25 kilometres in the Uruachic mining district, an area with a proven track record of gold- and silver-producing mines dating back as far as the Spanish Empire. 
The claims, which lie in the state of Chihuahua, are owned outright by Gold Goliath and in the centre of a several hundred kilometre trend of past producers and new discoveries that runs through the Sierra Madre Occidental Mountains of north-western Mexico. 
The trend in which Golden Goliath’s mining district falls has produced in the order of 40 million gold ounces and up to 2 billion ounces of silver over the last four centuries, rendering it an area of significant global interest for those prospecting for new deposits of the precious metals.
Canada-based gold producer Agnico-Eagle stands to earn a 51 per cent interest in the Las Bolas/Los Hilos project under the terms of an earn-in agreement inked in 2010 by putting in up to $5 million in exploration over a time frame of five years. Additional investment in exploration of $10 million or the completion of a feasibility study would then accrue another 20 per cent of the project. 
The first year of drilling saw the completion of a diamond drilling program that consisted of almost 3,000 metres over ten holes.
This morning also brings news that Golden Goliath has closed its private placement of 14.4 million units priced at 9 cents each, raising total proceeds of $1.3 million. The funds raised will go toward projects including preparing the Nopalera site adjacent to the Las Bolas/ Los Hilos prospect. 
Both prospects are proximate to Fresnillo’s (LON:FRES) 9.6 million ounce Orisyvo gold discovery, with the company stating at the end of last year expectations of a “company-building” gold deposit on the Nopalera site.
Speaking at PDAC, Golden Goliath president and CEO Paul Sorbara looked forward to the site’s first-ever drilling campaign this year. “Moving forward at Nopalera is contingent on financing, but we want to implement the program as soon as possible.” 
Each unit issued under the private placement consisted of one common share and three-quarters of one non-transferable share purchase warrant, with each whole warrant exercisable for another common share until March 26, 2016 for the price of 12 cents.

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