Riedel Resources Limited (ASX: RIE) has received firm commitments to raise A$1.5 million in new equity via a well-supported share placement to sophisticated and professional investors.
Riedel proposes to use funds from the Placement towards diamond drilling at the Kingman Gold Project in Arizona, USA, including sampling/assaying of diamond drill core, initial baseline environmental work and general working capital purposes.
“We continue to be very encouraged by the high-grade gold and silver assay results being achieved at our Kingman Project,” Chairman, Michael Bohm, said.
“The numerous high-grade assay results, achieved from shallow depths at Tintic, point to the potential for an open pit mining opportunity for the project. These results included 1.5m @ 27.5 g/t Au and 37 g/t Ag from 13.7m in hole 2022-CHL-008B and 3.8m @ 18.1 g/t Au and 201 g/t Ag from 85.3m in hole 2022-CHL-075D1.
“We anticipate the drill rig mobilising to site in November 2022. The planned diamond drill programme, comprising approximately 20 holes, will focus on the high grade Tintic area, as we seek to build on our geological understanding of the high-grade nature of the gold and silver mineralisation.
“It will also allow us to collect core sample which will provide additional grade information and importantly, it will provide additional sample material for testwork on the mineralised veins and assist with characterisation of the overburden material (that rock which sits above the high-grade veins) which will be required for permitting of any future open pit mining operation at Tintic.”
Oracle Capital acted as Lead Manager to the Placement.
For further information please visit: https://www.riedelresources.com.au/