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- Argonaut Resources (ARE) has fast-tracked its reverse circulation drilling program at the Island gold prospect
- The Island gold prospect is located south of the Higginsville gold deposits in Western Australia
- Argonaut has decided to fast-track this drilling program after successfully completing a $1.28 million private placement
- Approximately 388.3 million fully paid ordinary shares were issued to professional and sophisticated investors at a price of $0.0033 per share
- Argonaut is now looking to secure the remaining 29 per cent of its possible 80 per cent holding in the Higginsville gold deposits
- To do so, the company must spend $1.5 million on exploration in three years
- Argonaut shares have jumped 25 per cent and they are trading for 0.5 cents each
Argonaut Resources (ARE) has fast-tracked its reverse circulation (RC) drilling program at the Island gold prospect.
The Island gold prospect is located south of the Higginsville gold deposits in Western Australia.
The prospect is defined by a 1200 by 400 metre gold geochemical anomaly and rock-chip samples from surface.
It sits directly over a major north-west structural intersection that may have hosted gold mineralising fluids such as hydrothermals and fluids.
Island gold has never been previously drilled so the potential for high-grade mineralisation exists and the group of neighbouring tenements that surrounds it were last drilled in the 1990s.
Argonaut has decided to fast-track this drilling program after it successfully completed a $1.28 million private placement.
Approximately 388.3 million fully paid ordinary shares were issued to professional and sophisticated investors at a price of $0.0033 per share.
This price represents an 18 per cent discount to Argonaut’s last closing price of $0.004 which was seen on April 28, and a 21 per cent discount to the 15-day volume weighted average price of $0.0042.
“The funds raised this week will allow Argonaut to fast-track drilling at the Island gold prospect near Higginsville, Western Australia,” Director and CEO Lindsay Owler commented.
“Argonaut will also execute several ground gravity surveys over discrete airborne gravity anomalies at the Murdie copper project in South Australia,” he said.
“The ground gravity data will provide the most accurate gravity data for final modelling and targeting prior to drilling planned to start following the grant of the final authorisation,” he added.
On February 7 2017, Argonaut and Loded Dog Prospecting executed the Eastern Goldfields Earn-In Joint Venture and Royalty Agreement.
This agreement gives Argonaut the opportunity to earn an 80 per cent interest in the Higginsville Project tenements.
The company has already earned a 51 per cent interest after spending $500,000 on exploration expenditure within two years.
To earn the remaining 29 per cent, Argonaut must spend an extra $1.5 million on exploration within three years.
Argonaut shares have jumped 25 per cent and they are trading for 0.5 cents each at 2:21 pm AEST.
