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Avenira (ASX:AEV) with new licences and A$3M loan ends March quarter in high spirits

Summary

  • The analysis of drill intercepts on the Jundee South Gold Project indicates two gold trends.
  • Avenira has planned an RC drilling campaign on identified targets during 2021.
  • The Company acquired two Prospecting Licences to the south of the Jundee South Project, having stratigraphy similar to the Flushing Meadows gold resource.
  • During the quarter, Avenira secured a loan facility of A$3 million to advance the exploration activities on its flagship gold project.

Junior gold explorer Avenira Limited (ASX:AEV) has shared the activity report for the quarter ended on 31 March 2021. During the reporting period, in February, Avenira received all composite sample results of its maiden Aircore drilling campaign on its flagship Jundee South Gold Project.

Recent update: Avenira (ASX:AEV) unlocks value at Jundee South Gold Project, shares zoom 12.5% post announcement

The drilling programme was undertaken during the second half of 2020 and included the drilling of 271 holes. To complement the drilling results, the company also undertook a resampling program, which involved the collection and analysis of anomalous 4m composite intercepts at 1m sampling intervals.

Avenira has shared the results of the sampled but non-analysed anomalous composites and anomalous resampled intervals received to date: -

Image source: Company update, 27 April 2021

To know more read more: Avenira (ASX:AEV) wraps up initial aircore drilling program at Jundee South

 Acquisition of two Prospecting Licences

On 10 March 2021, Avenira updated on the acquisition of two Prospecting Licences- P53/1712 and P53/1713. These licences lie to the south of the Jundee South prospect and are located on the magnetic feature along which Yandal Resources Limited’s (ASX:YRL) Flushing Meadows gold deposit is located. The initial geological interpretation outlined similar stratigraphy, similar to the Flushing Meadows deposit.

Location of the Prospecting Licences (Image source: Company update, 27 April 2021)

Read more: Avenira (ASX:AEV) acquires 2 Prospecting Licences at Jundee South

Avenira will commence reconnaissance exploration on the newly acquired licences, and compilation of historical data and refining of geological interpretation.

Ongoing and future works on Jundee South Project

Currently, the resampling of the assays with gold grades greater than or equal to 0.1 g/t continues. Further, a geological interpretation on the Aircore drilling data has commenced and will be used for planning the upcoming RC drilling program. The RC drilling will also include the two targets identified during the Aircore drilling- MF02 and YaN11. The drilling rods will start spinning mid-year.

Subsequent to the quarter, Avenira has begun discussions with the Board of Tarkla Matuwa Piarku Aboriginal Corporation (TMPAC) to finalise the exploration access agreement for over 90% of the area under the Jundee South Project. Discussions have been positive and encouraging, but the process of finalising and executing the agreement along with field surveys, may take more time and could possibly delay the RC drilling programme.

Read here: Avenira (ASX:AEV) wraps up initial aircore drilling program at Jundee South

Avenira secured a loan facility

During the March quarter, Avenira executed a loan agreement with its substantial shareholders to fast-track the exploration and development activity on its flagship project. The company has secured a loan facility of AU$3 million from Au Xingao Investment Pty Ltd.

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The Company will seek the approval of shareholders for the loan facility during the general meeting to be held in the coming months.

Cash & Cash Position

Avenira reported a cash balance of A$1.6 million at the end of the March quarter. The Company incurred a total exploration expense of A$214,000 during the quarter.

Good Read: Will stars align for Avenira (ASX:AEV) in 2021?

Share Price

AEV traded at A$008 a share on 28 April 2021 at 12:08 PM with a market capitalisation of A$6.9 million as of 6 May 2021.

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