Felix Gold to raise $3m to accelerate exploration at Treasure Creek

Fresh from its recent stunning drilling success, Alaskan gold explorer Felix Gold (ASX: FXG) has unveiled plans to raise up to $3 million through a share purchase plan (SPP).

The company will funnel capital raised towards helping to accelerate exploration at the NW Array Target within its high-class Treasure Creek project and to support the finalisation of a maiden resource estimate at the NW Array’s southern zone.

Funds will also be allocated to assist in further assessing the company’s discovery of additional high-grade stibnite (antimony) zones at Treasure Creek.

Recent drilling success

The upside potential which Felix is looking to capture with the help of this new funding was highlighted by the receipt of quality gold and antimony assays earlier this month from Treasure Creek.

The company views the recent results as a significant milestone which has helped Felix outline the NNE orientation of mineralised gold zones and the encompassing enriched high-grade antimony zones.

Felix now believes it has opened up potential for more extensive strike length and the prospect of additional parallel trends, supported by the continuation of soil anomalies.

The largest minerals claim owner in the rich Fairbanks gold mining district, Felix has already identified a fast-track development option at Treasure Creek with the potential provision of additional ore supply to Kinross Gold’s nearby Fort Knox gold mine.

Multi-million ounce opportunity

“Felix Gold is strategically positioned in the Fairbanks Gold District to explore for multi-million ounce gold resources and provide investors with a near-term value pathway to low-capex production,” said chief executive officer and managing director, Anthony Reilly.

“Having calculated an exploration target of 1.1Moz to 3.6Moz gold at the NW Array Target at the Treasure Creek project, we have now completed the RC drilling program at the Southern Zone with results surpassing our expectations. Our focus is now firmly set on delivering a JORC-compliant Maiden Resource Estimate for the NW Array Southern Zone in Q4 of this year.”

“Delivering this would represent a major milestone for Felix in firming up the commercial viability of the Treasure Creek project. Our close proximity to the Fort Knox mine, operated by Kinross Gold Corporation, represents a tangible opportunity for Felix to fast track low-capex production of a substantial gold resource.”

Felix is also undertaking further test work on the high-grade stibnite zones to understand the potential of this critical mineral discovery.

SPP details revealed

Under the SPP Felix will issue new fully paid ordinary shares at $0.08 per share, equivalent to a 15.4% discount to the volume weighted average price (VWAP) over the five trading days before the date the SPP was announced.

The SPP promotion is offering eligible shareholders who were registered shareholders as at 7pm (AEST) on Friday 25th August 2023 the opportunity to apply for up to $30,000 of new fully paid ordinary shares.

Reach Corporate is the lead manager of the SPP offer.