Commenced Drilling On Monoyai Prospect In PNG
Gold Mountain Limited (ASX:GMN) has entered into agreements with entities affiliated with Matt Liddy, who is an advisor to the company, that include providing A$2 million of funding.
The proceeds of the funding will be to provide general working capital. GMN is advancing its flagship Wabag Project in PNG and has commenced the next phase of the drilling at its Monoyal copper gold porphyry target and initial exploration activities at its Mt Wipi target.
The funding has been provided by way of placements of ordinary shares in the company. The Investor has made investments totalling A$2 million for 36,363,636 Shares, based on a placement price of $0.055 per Share. This placement price represents a premium of 31% to GMN’s current 20-day VWAP.
Gold Mountain will also issue a total of 2,545,454 Shares to satisfy placement fees payable to the Investors.
The company’s plans for drilling the Monoyal copper-molybdenum porphyry prospect at Wabag is for a four hole programme totalling approximately 2,800m. The first two holds will test below a wide mineralisation zones intersected in historic drilling
The location of the subsequent two holes will be dependent on the visual observations from the initial two holes in this campaign, as well as from petrological and geochemical vectoring work currently being undertaken.
The planned holes will have target depths of between 700m to 750m and they are designed to intersect elevated copper and molybdenum mineralisation approximately 200m below the previous intercepts.
Meanwhile, exploration licence EL2632, known as Mt Wipi, was recently granted to GMN 6768 (PNG) Limited a 100% owned subsidiary of Gold Mountain. The new tenement was granted for a two-year period that expires on August 13, 2022.
EL2632 is contiguous to Gold Mountain’s existing tenement package and located along the same structural trend that hosts both the Monoyal Prospect and the Sak Creek Prospect.
The licence is located northwest of EL’s 1966 (Sak Creek) and 2306 (Monoyal) and was previously under an exploration permit by BHP in 2012.
Gold Mountain believes that it has the potential to host porphyry style copper – molybdenum – gold mineralisation and possible skarn style mineralisation.
The company has initiated exploration activities on EL-2632, with a total of 28 outcrop and float rock chip samples collected from five drainages at the southern end of the tenement.
Assay results for these samples are highly encouraging with copper values ranging from 100ppm Cu to 9.64% Cu, gold from 0.01 g/t Au to 1.96 g/t Au and silver from 0.14 g/t Ag to 144 g/t Ag.
