Caprice Resources (ASX: CRS) has announced a significant high-grade gold intercept of 22m at 66.2 g/t Au at its Island Gold project, including a bonanza interval of 8m at 181 g/t Au.
This defines a new high-grade zone approximately 120m west of the established Vadrians lode.
Within this intercept, an exceptional 8m interval graded 181 g/t Au, also from 42m downhole.
This represents the highest-grade intercept returned to date at the Island Gold Project.
The mineralisation is hosted within a preferentially weathered shear zone, which may indicate a style distinct from the BIF-hosted mineralisation observed at Vadrians.
Follow-up reverse circulation drilling is scheduled to recommence next week, with three diamond drill holes currently awaiting assay results to test depth continuity.
Island Gold Exploration Progress
This new intercept substantially enhances the company's exploration potential as it progresses towards a maiden Mineral Resource Estimate.
Previous air-core drilling has already defined multiple new anomalous gold trends including Trig Gully and Ironclad Extended, which are now slated for follow-up RC testing.
Caprice is undertaking a substantial 50,000m drilling program designed to support the Mineral Resource Estimate.
The focus of this work will be on northern strike and depth extensions at Vadrians, as well as down-dip extensions in central and northern high-grade zones.
West Arunta Divestment Completed
In related news, Caprice has divested a 75% interest in its West Arunta (Chobe) Project to Corella Resources for total consideration of up to $2.89 million.
This transaction provides $2.70 million cash at completion, strengthening Caprice's balance sheet to an expected $16.5 million post-completion.
Caprice retains a 15-25% interest and is free-carried through to a Decision to Mine, significantly reducing its future funding obligations for the project.
Corella Resources (ASX: CR9) concurrently announced a $5 million capital raise at $0.012 per share to fund the Chobe acquisition, which remains subject to several conditions precedent, including Corella's successful capital raising and necessary regulatory approvals.
Island Gold Shines as West Arunta Deal Progresses
Caprice Resources has delivered a compelling high-grade gold intercept at its Island Gold Project, significantly boosting exploration momentum and its pathway to a maiden resource estimate.
The concurrent divestment of its West Arunta assets provides crucial funding and reduces future expenditure, allowing management to focus on advancing its core gold projects.
Investors also should be aware of the risk of dilution from Corella's capital raise and the potential for Caprice's retained interest to convert to a buy-backable NSR royalty, which could limit ultimate value capture for Caprice.
