Dark Horse’s Remarkable June Quarter, Gold and Tungsten Projects’ Acquisition in Spotlight

Summary

• Dark Horse executed a term sheet in June 2020 to wholly acquire Tampere Gold Project (7 exploration permits) in Finland and Bergslagen Tungsten Project (7 exploration permits) in Sweden.
• In the last quarter of 2020, a diamond drilling program is planned to begin at Tampere Gold Project, focusing on extending the Hopeavouri high-grade gold prospect.
• To progress drilling at Argentinian gold assets, Dark Horse is considering various capital raising transaction methods, JV opportunities and/or alternative financing facilities.
• DHR successfully completed a capital raising program of AU$2.2 million via a placement and an SPP in June and July.

Dark Horse Resources Ltd (ASX:DHR), an experienced gold explorer, recently released its activities report for the June 2020 quarter. During the three-month period to June, the Company continued to strengthen its portfolio through the acquisition of new gold and tungsten projects in the Tier 1 mining jurisdictions while advancing on the existing Argentinian assets.

Acquisition of Gold and Tungsten Projects in Tier 1 Mining Jurisdictions

In June 2020, Dark Horse entered a partially binding term sheet to wholly acquire Bergslagen Tungsten Project in Sweden and Tampere Gold Project in Finland. The agreement involves the 100% acquisition of a total of seven (7) gold exploration tenements in Finland and seven (7) tungsten exploration tenements in Sweden from Sotkamo Silver AB.

The deal involves a cash consideration worth €150,000 to be paid upon transfer of the permits to DHR, which will also make an additional payment of €20,000 for transaction documentation costs in the European countries. Completion of the acquisition has been extended to 14 August 2020 due to the delays concerning the summer holidays in the Scandinavian region.

Currently, a Permit Purchase Agreement (PPA) between the parties is being finalised. Once finalised, the permits will be transferred into the two new 100% owned subsidiary companies established by DHR, namely NewPeak Finland Oy and NewPeak Sweden Oy to hold the Finland gold and Swedish tungsten exploration permits, respectively.

Tampere Gold Project stretches over 286 hectares of area, covering Hopeavuori (2 permits), Isovesi, Järvenpää, Kalliojärvi, Lavajärvi and Metsäkylä, in the neighbourhood of Tampere, which is home to Dragon Mining Limited’s three (3) world-class gold mining operations (Orivesi, Jokisivu and Kaapelinkulma) and a processing facility at Vammala.

The Tampere Gold Project has already been subject to surface mapping, moraine geochemistry, ground geophysics (magnetics and IP) and diamond drilling by Sotkamo and the Finnish Geological Survey for the near surface mineralisation. It is believed that the mineralisation might extend to the deeper sections, which remain heavily underexplored and do not represent the true potential of the mineralisation.

Moreover, a 3,341-metre, 54-hole shallow diamond drilling program focused on a 30-metre-wide mineralised structure stretching along the 300 metres strike length at Hopeavouri, the most advanced prospect. While the drilling program tested for regions within 75 to 100 metres below the surface, surface geophysics suggests the mineralisation zone could extend to the northwest to a total of 800 metres. Some of the best intercepted results from the 132 intersections are as follows –

• R305 hole: 11.5 metres with 19.4 grams a tonne Gold, 30.6 metres downhole
• R313 hole: 10.7 metres with 14.4 grams a tonne Gold, 4.0 metres downhole
• R330 hole: 3.0 metres with 106.7 grams a tonne Gold, 22.0 metres downhole

The historical metallurgical testing returned a 93% gold recovery from sulphide flotation. The historical exploration program has been focussed on several prospects with high potential for a shallow gold mineralisation. A diamond drilling program is scheduled for the last quarter of 2020 targeting the Hopeavouri high-grade gold prospect.

Read: Dark Horse Advances on Acquisition of Gold and Tungsten Projects in Tier 1 Mining Jurisdictions

Bergslagen Tungsten Project stretches across 11,012 hectares of area in the iconic Tungsten mining region of Bergslagen and covers the Yxsjöberg, Gubbo, Hörken, Högfors, Sandudden and Gänsen Prospects. Historical assay results ranged from 0.25% to 0.44% of Tungsten Trioxide (WO3).

The Yxsjoberg prospect within the mining project area produced over 5 million tonnes grading 0.38% tungsten between 1897 and 1989. In 2011-12, Tumi Resources had reported a known resource of 0.5 Mt at a grade of 0.35% WO3 with tailings of 4.6Mt.

Way Forward for Scandinavian Projects

Planned activities for the Tampere Gold Project and Bergslagen Tungsten Project include-

• A drilling program aimed for the mineral resource definition at the Tampere Gold Project, including one at the Hopeavouri Prospect where the JORC code compliant estimation of resources will be targeted in the upcoming 12 months.
• Assessment and evaluation of opportunities to secure new gold exploration grounds in Finland.
• Strategic review of Bergslagen Tungsten Project permits for the planning and scheduling of a comprehensive exploration drilling program.

Good Read: Dark Horse Exploring for Large Gold Deposits in Key Mining Jurisdictions, Expanding Horizons in 2020

Argentinian Projects Gearing Up for Drilling Programs

Dark Horse has engaged with the renowned North American financial advisor Red Cloud Financial Services Inc for soliciting interest, structuring, and providing financial advice with special focus on the Argentinian Las Opeñas and Cachi gold projects.

Must Read: Dark Horse Gains 25% Stake in Las Opeñas Gold Project, Eyes Drilling Program

The collaboration is primarily aimed at evaluating various capital raising methods such as equity or debt fundraising to advance the Argentinian assets.

Capital Raising Program for AU$2.2Mn

Dark Horse successfully raised over AU$2.2 million in June and later in July through a placement and an SPP, raising over AU$1.95 million in cash and strengthening the balance sheet by conversion of AU$255,000 in debt under the SPP.

Fund raised are planned to be directed towards –

• Payment of €150,000 for the acquisition of Sotkamo Finland Gold and Sweden Tungsten Exploration Permits
• Initial drilling program at the Tampere Gold Project in Finland
• Continue efforts towards sourcing a joint venture partnership or securing alternate funding routes for drilling programs at the Cachi and Las Opeñas gold projects in Argentina
• Managing expenses related to any capital raising activity
• General working capital

Do Read: Investors Lap Up Dark Horse SPP, Company to Raise $1.5Mn and Honour All Applications

DHR stock was trading at AU$0.002 a share on 6 August 2020 (AEST 03:17 PM).