Summary
- Australian mineral exploration company, GTI Resources has completed a Share Purchase Plan, raising $978,000. Since reporting cash of $2,089,000 at the end of the June 2020 quarter, GTI has subsequently now raised an additional $2,789,000 before costs by way of the recent placement and SPP, totaling cash of $4,878,000.
- GTI is now funded to undertake its ambitious work programs in 2020.
- The Company also completed a significantly expanded 1,000-hole soil sampling program, via auger drilling at Niagara (Kookynie) Gold Project.
- The geochemical program marks the next step in the Company’s rapid evaluation of the potential for economic gold mineralisation across the Niagara Trend.
- The first drilling campaign at Niagara (Kookynie) Gold Project is confirmed for the third week of September, to be followed by RC drilling in the third week of October.
GTI Resources Limited (ASX:GTR) is rapidly evaluating the potential for economic gold mineralisation across the newly consolidated and historically underexplored Niagara Trend, near Kookynie in WA’s highly prospective eastern goldfields. The Company is excited at the prospect of being able to drill test the Niagara project soon.
Executive Director, Mr Bruce Lane notes that the neighbouring mineral explorers continue to produce encouraging drilling result at Kookynie.
INTERESTING READ: GTI Resources Braces to Fast-track Exploration at Niagara (Kookynie) Gold Project
The Company has successfully concluded an auger soil sampling program and reconnaissance mapping at its Niagara (Kookynie) Gold Project. This significant update follows the completion of GTI’s Share Purchase Plan (SPP), with SPP shares expected to commence trading on 31 August 2020.
Completion of Auger Soil Sampling & Field Mapping at Niagara (Kookynie) Gold Project
A significantly expanded 1,000-hole soil sampling program was completed through auger drilling at the Company’s Niagara Gold Project near Kookynie in WA. Below are the program details:
- The objective of the completed infill and extensional multielement geochemical program was to refine and extend previously defined multielement anomalies for the upcoming drilling during September and October.
- The geochemical sampling program successfully collected ~ 1,000 soil samples, ahead of schedule and without incident.
- Reconnaissance exploration mapping at the Project, including investigation of numerous historical workings, has provided further understanding of the geological and structural framework of the project area. The new data is being integrated into the evolving model of mineralisation.
Licences & Mineral Occurrences on 1:500,000 Geology at Niagara (Kookynie) Project (Source: ASX Report, 27 August 2020)
Ongoing Activities at Niagara (Kookynie) Gold Project
“The 1,000-hole soil sampling and field mapping campaign went very well”, says Mr Bruce.
According to GTI, ~ 1,000 soil samples from the geochemical sampling program are currently on the way to ALS Laboratories, Perth. Multielement geochemical assay results are expected within the next 2 weeks. GTI’s key activities underway comprise of integrating historical data, field observations along with newly acquired geophysics and geochemistry. They are likely to help develop a lithogeochemical and exploration targeting model.
Pipeline at Niagara (Kookynie) Gold Project
GTI Resources advised that further refinement of the lithogeochemical and exploration targeting model is expected to be undertaken once results from the current auger soil sampling program are received. The integrated data approach will be used to develop targets, which will be initially examined by Aircore drilling and then by reverse circulation (RC) drilling.
The Company has already secured a drill rig to complete Aircore drilling and follow up RC drilling. Aircore Drilling of circa 50 aircore holes is likely to begin in the third week of September 2020. It would be followed by RC drilling, planned for the third week of October 2020.
Another Accomplishment: Completion of Share Purchase Plan Cements Funding for Gold Exploration
On 26 August 2020, the Company notified that it had concluded its SPP which was announced on 13 July 2020. Closing of the SPP offer was scheduled for 21 August 2020. The SPP raised $978,000 before costs and was fully underwritten by CPS Capital Group Pty Ltd.
Applications for 11,133,334 new Shares were received, totalling $334,000. These are scheduled to be issued on 28 August 2020. According to GTI, 21,466,666 new shares at $0.03, arising from the SPP shortfall, will be placed with settlement anticipated to occur on 31 August 2020. Trading of the SPP Shares is expected to commence on 31 August 2020.
Since reporting cash of $2,089,000 at the end of the June 2020 quarter, GTI has subsequently now raised an additional $2,789,000 before costs by way of the recent placement and SPP, totaling cash of $4,878,000.
GTI Resources believes that sufficient funding is now in place to achieve the Company’s ambitious work programs in 2020. These work programs encompass assets in both the US and Western Australia.
While the drilling is scheduled to commence next month at the Niagara (Kookynie) Gold Project, the phase two exploration program is being planned at the high-grade Jeffrey project in Utah.
ALSO READ: Walk Through GTI Resources’ Splendid Journey in June 2020 Quarter
GTR quoted $ 0.029 mid-day on 31 August 2020. The stock has delivered returns of 480% in the past six months.
