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Tempest Minerals (ASX:TEM) readies to kick off drilling at Euro, receives approvals

Highlights

  • Tempest has received approvals for drilling at the Euro project’s Calais target area.
  • Tempest also announced the completion of the further AU$500,000 top-up placement. The recent capital raisings received an overwhelming response from the existing shareholders and the new investors.
  • Shares of Tempest surged ~15% on 25 October 2021 at 2:01 PM AEDT.

Tempest Minerals Limited (ASX:TEM) has shared an update on the proposed drill program at the Euro Project. The company has received approvals for drilling at the Calais target area on the project. The planning and preparations for the drilling program are also in their final stages.

Triggered by the positive update, shares of Tempest surged ~15% on 25 October 2021 (2:01 PM AEDT).

Read Here: Tempest Minerals Ltd (ASX:TEM) receives overwhelming support from investors, announces capital raising plans

Proposed drill program at Euro

Tempest’s wholly-owned Euro gold project stretches across 176km2 in the highly prospective Yalgoo region of Western Australia. The explorer landholding in the Yalgoo region covers more than 900km2, comprising more than 604km2 area of granted tenements and 311 km2 of tenement applications.

Tempest considers the Euro project to be located in an underexplored geological terrain surrounded by numerous development projects and operational mining operations such as the Karara (Iron), Shine (Iron), Mt Mulgine (Gold/Tungsten) and Rothsay (Gold/Copper).

Must Watch: Will Tempest benefit from attractive mining opportunities in WA? | Expert Talks Mr Don Smith

To follow up on the previous drilling programs conducted during the 1990s and early 2000s, Tempest plans to drill up to 2,000m at Calais. The previous drill programs had intercepted significant intersections such as 15m @ 2.3g/t gold from 15m and 2m @ 11gpt from the surface. Despite the promising results, the prospect couldn’t be adequately tested due to weak gold price environment in the past.

Tempest has developed a thorough understanding of the structural and stratigraphic controls of the mineralisation, thanks to the compilation of historic data and further field observations. Further, the gold mineralisation remains open in all directions and has strong analogues to nearby operations.

Must Read: Tempest Minerals Ltd (ASX:TEM) highlights milestones in its June quarter report

Regulatory nod clears path for drilling at Euro

Tempest has received approvals to commence drilling at the Calais target area of the Euro Project from the Western Australian regulatory authorities. The proposed initial diamond drilling program plans to drill up to 2,000m to test the Calais target area. The regulatory approval also includes subsequent drilling at the target area.

Tempest Minerals

Proposed drilling area (red) at the Euro Project Source: Tempest Minerals

The significant anomalous zones include the high-grade tenor mineralisation recorded at the Calais target area during the previous reconnaissance shallow drilling by Aztec, Normandy Gindalbie and others. Although the initial holes had intersected significant levels of shallow gold mineralisation, they couldn’t be thoroughly tested primarily due to the persisting weak gold price environment.

The next steps at the Euro gold project include –

  1. Awarding of the drilling contract
  2. Preparation of the drill site
  3. Ongoing fieldwork for delineation of further drilling

Capital Raising

Tempest has announced the completion of a further AU$500,000 top-up placement. On 26 August, Tempest had shared its capital raising plans to advance on the Western Australian projects, including-

  1. AU$391,000 equity placement at an issue price of 1.7 cents a share
  2. AU$1.25 million non-renounceable entitlement issue for eligible existing shareholders offering 1 unit for every 4 shares held at 1.7 cents per share

Tempest received incredible support for its capital raising programs, with the offer being heavily oversubscribed.

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