Saturn Metals Limited (ASX: STN), operates as a mineral exploration company with a focus on the evaluation and development of gold deposits across the Australian region.
On 15th May 2019, the company announced that it had received firm commitments to raise $1.5 million (before costs) to expedite the drilling and resource definition at its 100%-owned Apollo Hill Gold Project located ~60km south-east of Leonora in the heart of WA’s Goldfields region.
The placement involved the issue of around 7.14 million new fully paid ordinary shares at a price of 21 cents per share, representing a 9% discount to Saturn’s five-day volume weighted average price, and was strongly supported by professional investors. The acting Lead Manager to the Placement was Patersons Securities Limited.
The proceeds of the placement, together with the existing cash balance of $ 2.838 million as on 31st March 2019, would be utilised to aggressively fund and accelerate the follow up drilling geared towards delivering the next upgrade of the Apollo Hill Mineral Resource, which currently stands at 20.7 million tonnes grading 1.0 g/t Au for 685,000 ounces of gold.
The Project is surrounded by excellent infrastructure and several significant gold deposits and operations. Preliminary metallurgical test work suggests excellent extraction characteristics such as free milling and gravity recoverable coarse gold. A substantial program of 10,000 m is scheduled to commence in early June 2019 to primarily target the newly discovered higher-grade hanging wall zones at Apollo Hill which recently returned intersections including:
- 13m @ 5.05g/t Au from 74m inc. 4m @ 9.8g/t Au - AHRC0136b
- 10m @ 5.78g/t Au from 46m inc. 5m @ 11g/t Au - AHRC0124b
- 6m @ 5.2g/t Au from 37m - AHRC0127b
Currently, assays are pending for 18 recently finished RC and Diamond holes with results due to be disclosed in the upcoming weeks. Besides, 1,800 m, 60-hole regional aircore drilling program is also due for completion in the coming days.
Recently, Saturn Metals also received a grant of $35,000 in the last round of the West Australian Government's Exploration Incentive Scheme.
During the quarter ended 31st March 2019, the first phase of 5,241 m 75-hole aircore drilling program was also undertaken at multiple targets across Saturn Metals 1000-km2 Keith Kilkenny land package. The results of this first pass Greenfields program testing geophysical targets showed several anomalous areas. The best results were recorded at Bob’s Bore where a broad (400-m wide) anomalous zone of mineralisation (~0.1- 0.7g/t Au) was noted in bottom of hole assays across the gold prospective Keith Kilkenny shear zone, approximately 3.5 km east of Apollo Hill.
On 13th May 2019, the securities of the company were placed in a trading halt pending the release of an announcement related to a capital raising. Post the announcement released to the market on 15th May 2019, the trading halt on the securities were lifted.
By the end of the trading session, the stock of the company, was at a price of A$0.220 (as on 15 May 2019), down by 8.333% from its previous close on 10 May 2019. Saturn Metals has a market capitalisation of around $ 13.56 million with ~ 56.5 million outstanding shares.