Silver City Minerals intends to use funds from a capital raising for a high impact drilling program on the high-grade Copper Blow copper-gold prospect near Broken Hill in western New South Wales. The company intends to raise around A$700,000 from a placement and share purchase plan.
This week Silver City announced a placement of new shares to sophisticated investors for a total of A$428,000 and a share purchase plan to existing eligible shareholders to raise a maximum of A$250,000.
Earlier this month the company announced plans to drill test significant copper-gold mineralisation at Copper Blow, which is 20km from the historic mining centre of Broken Hill. The drilling is expected to start in about four weeks with an initial program of 2600 metres of RC and diamond drilling.
Historic drilling intersected high-grade IOCG-style mineralisation and the capital raising will enable Silver City to carry out a new drilling program to test the system at depth and along strike.
Surface rock chip sampling by Silver City has confirmed the prospectivity of Copper Blow with grades up to 6.9% copper and 1.85 g/t gold returned.
Silver City’s managing director Chris Torrey said, “Copper Blow is an exciting exploration program with high-grade historical results up to 6.7% copper over 11.8 metres and where follow-up drilling will target a combined strike length of 750 metres within a prospective 4km-long horizon.
“Upon completion of the capital raising, with a market capitalisation of circa $3.5 million and $1.5 million in cash, Silver City will be highly leveraged to drilling success.”
The company’s joint venture partner in the project, CBH Resources, has confirmed that it will participate in the drilling program. CBH director and COO Visko Sulicich said, “CBH supports the drilling proposed by Silver City as it represents an opportunity to test an exciting new deposit style in the Broken Hill area.”