Azarga Metals Corp. (CVE:AZR) said on Wednesday it intends to expand its first-phase drilling program at its Unkur silver-copper project from 3,000 metres to up to 5,000 metres and plans to raise $800,000 to $1mln through a non-brokered private placement of units to finance the expanded programme.
Among activities in the works is additional ground magnetic survey and trenching, a plan to increase potential size of maiden NI 43-101 Resource, due in the first quarter of 2017, and to gain extra data to expedite preliminary economic assessment work.
Azarga Metals is just over half way through its first phase 3,000 meter diamond drilling programme at Unkur, which commenced at the start of August. Eight drill-holes have been completed of what are expected to be between 15 and 17 holes and the Company has received and published assays for four of those holes. Read more.
“Early results show we could have a globally significant silver and copper deposit in Unkur. Based on the thickness of mineralization and high silver and copper grades we are seeing so far, I’m pleased we’re able to accelerate our work on the project at this time and look forward to further results,” said Azarga Metals‘ president and CEO Dorian L. (Dusty) Nicol.
While the original first phase drilling programme remains fully funded together with planned corporate overheads to the end of 2017. However, the Company intends to raise between $800,000 and $1,000,000 through the issuance of between 2,500,000 and 3,125,000 units at a price of C$0.32 per unit through the private placement.
Azarga Metals intends the use of proceeds of the private placement to fund the cost of the expansion of the first phase exploration program together with incremental third-party consulting with respect to preparation of a Resource model for the Unkur Silver-Copper Project.
Story by ProactiveInvestors