Raiden Resources (ASX:RDN/DAX:YM4) hits significant milestone; announces Mineral Resource Estimate (MRE) for Mt Sholl and a large JORC Exploration Target

Highlights

• Raiden Resources’ Mt Sholl resource has been estimated to be above the upper end of the previous Exploration Target with an MRE of 40.4 Mt @ 0.45% Ni_Eq or 1.17% Cu_Eq containing 183.2kt of Ni metal, 473.0kt copper metal and 300,972oz of Pd+Pt+Au at 0.15% Ni_Eq cut-off
• Within the larger resource, there is a MRE of 20.3Mt @ 0.58% Ni_Eq or 1.49% Cu_Eq constrained within four shallow open pits (at 0.35% Ni_Eq cut-off)
• The MRE was estimated on the basis of 80,000m of historical drilling and recent 4,200m Raiden campaign undertaken in 2022
• The Company also revised its Exploration Target in accordance with JORC to  80–150 MT at a grade range of 0.45% - 0.75% Ni_Eq or 1.15% - 1.95% Cu_Eq
• The company plans to raise ~$1.84m and has received firm commitments from investors for a capital raise of AU$600,000 via a share placement of 200M shares at AU$0.003 per share AND a 1:4 non-renounceable rights issue placement to existing shareholders at AU$0.003 per share to raise up to AU~$1.241 million

Shares of Raiden Resources Limited (ASX:RDN, DAX:YM4) are up 25% on the Australian Securities Exchange (ASX) during the morning session on 03 April 2023 after the exploration and development company revealed the maiden JORC (2012) compliant Mineral Resource Estimate (MRE) for Mt Sholl Nickel-Copper-PGE Project. RDN shares were spotted trading at AU$0.005 on 03 April 2023.

The Mt Sholl resource is estimated to contain 40.4Mt @ 0.28% Ni, 0.28% Cu and 0.23 g/t 3E (0.45% Ni_Eq or 1.17% Cu_Eq) for 183.2kt of contained Nickel, 473.0kt of contained Copper and 300,972 oz of PGE’s.

Within the larger resource, an open pit MRE exists of 20.3Mt @ 0.58% Ni_Eq or 1.49% Cu_Eq (at 0.35% Ni_Eq cut-off).

Notably, the ASX-listed company also announced today about receiving binding firm commitments from its investors for a capital raise of about AU$600,000 via a placement. Under the placement terms, 200 million shares will be issued at a price of AU$0.003 per share. Also, RDN will undertake a non-renounceable rights issue on the basis of one new share for every four shares held on the record date, raising up to AU~$1.241 million. The company plans to use the proceeds from the Placement and the Rights Issue for metallurgical test work on its Mt Sholl Project, additional drilling based on metallurgical results and working capital.

Maiden JORC (2012) compliant MRE for Mt Sholl

 
Data source: Company update

The Managing Director also highlighted that the indicated category resources have a significantly higher grades (Ni – 26%; Cu – 29% and Co – 42% higher), as compared to inferred resources. This may provide potential for overall grade increase as inferred resources are converted to indicated with future infill drilling.

The company has defined a new JORC Exploration Target on the basis of  modelling of geological information and various geophysical surveys undertaken over the of the Mt Sholl intrusion. The Exploration Target defines potential for the Mt Sholl project to emerge as a strategically prominent mineral resource.

Mr. Dusko Ljubojevic also commented that the project area is supported by excellent infrastructure, including proximal port facilities. 

Understanding the process of Mineral Resource Estimation

 
Mt Sholl Project in relation to key infrastructure and other JORC (2012) Resources in the district

Bruce H. van Brunt of BvB Consulting undertook the mineral resource estimation based on the 2022 Raiden drill program, as well as,  historical drill data (former explorers between 1970 and 2007).

The deposits and prospects have been drilled by Rotary Air Blast (RAB), Air Core (AC), Reverse Circulation (RC) and Diamond drilling over multiple campaigns by several companies and most recently by Raiden. However, drilling by Raiden has been done using only diamond drilling techniques.

The samples from Raiden’s diamond drilling were sent to a Perth-based ALS Geochemistry laboratory for 33-element Four Acid Multi-Element Analysis ICP-AES (ME-ICP61). The Pt, Pd, Au analysis was performed through lead fire assay with an ICP-AES technique finish (PGM-ICP24) with 50g lead collection fire assay in new pots.

According to the company, the diamond drilling recovery has been excellent with very little to no core loss identified.

Mt Sholl 2023 Exploration Target

The Company has defined an Exploration Target following JORC 2012 reporting code, varying from 80 – 150Mt at a grade range of 0.45% - 0.75% Ni_Eq or 1.15% - 1.95% Cu_Eq.

To date, historical drilling has tested only 39% of the potential strike extents of the Mt Sholl Ni-Cu-PGE, 14% of the down-dip potential, and volumetrically only 6% of the potential contact unit which hosts the mineralisation.

The ASX-listed company is looking forward to take next value generative steps for its Mt Sholl Project. Also, Management are in negotiations with third parties regarding disposal or partnerships on the non-core assets across Europe and Australia, which are anticipated to strengthen the balance sheet further and provide discovery upside to shareholders.

RDN reshuffles its Board

Raiden has appointed Ms Kyla Garic to the Board as Non-Executive Director of the Company after Mr Martin Pawlitschek tendered his resignation from the position.

Ms Garic is a Corporate Governance and Accounting professional with more than 18 years of experience in external company audit, accounting and corporate governance.

Know more about Raiden’s At-The-Market (ATM) Facility

In today’s ASX release, RDN also informed its investors about its non-binding At-The-Money Financing Term Sheet with 8 Equity Pty Ltd. As per the agreement, 8 Equity will provide Raiden with an ATM facility for a fund raise of about AU$2 million over 3 years.

Under the ATM Facility, Raiden will seek approval from its shareholders for issuance of 96,000,000 advanced subscription shares to 8 Equity.