Golden Deeps (ASX: GED) is to raise a minimum $1.5 million at $0.0125 per share, with a one-for-one listed option, through a placement to professional and sophisticated investors.
Small Caps was informed that the raise, being led by Peak Asset Management, is well-oversubscribed via strong demand from institutions and family offices with over $12 million being bid by 2pm.
The placement follows the company’s acquisition in May of two projects located on the hotly sought-after Lachlan Fold Belt in New South Wales.
Golden Deeps also has two projects in Namibia, a copper-silver brownfield deposit and the Abenab vanadium-lead-zinc JORC (2012) Mineral Resource.
The two Lachlan Fold Belt areas are located close to both historic and modern large deposits.
Golden Deeps’ Tuckers Hill gold project is located within the historic Hill End goldfield, and the Company’s ground lies at the northern end of the modern day Hill End gold project owned by Peak Minerals (ASX: PUA), formerly Pure Alumina Ltd.
Last week, Golden Deeps reported aeromagnetic data has delineated priority gold trends at this new project. Historic workings at the Hargraves goldfield (discovered in 1851 and last worked for alluvial gold between 1929 and 1939) extend into the Company’s tenement.
Only one hole has been drilled in recent times. The former Challenger Mining Corporation’s 1988 hole intersected 1m at 3.25 grams per tonne gold, with visible gold logged in the diamond core. Historic rock chip sampling at Tuckers Hill gold project were as high as 705g/t gold.
Havilah project adjoins Australia’s largest undeveloped silver project
The other project acquired in May 2020 was the Havilah gold project, ground which adjoins the Bowdens silver deposit, now being advanced by Silver Mines (ASX: SVL), and Freeport McMoRan’s gold-copper porphyry project.
This ground also includes the historic Cheshire copper mine, at 908m above sea level – one of the highest mines in NSW.
The Cheshire copper mine comprises several shafts, workings and an old brick kiln. At the Milfor prospect 1.4km to the south, there is a group of workings that have exploited disseminated and veined copper mineralisation in andesite.
Following the placement, Golden Deeps plans to test geophysical and geochemical anomalies through a detailed review of historical exploration data, followed by geochemical surveys, geological mapping and then, drilling.
Namibia vanadium discussions continue
During the June 2020 quarter, the company also continued discussions on the Abenab vanadium-lead-zinc resource in Namibia with China’s Dalian Bolong New Materials, one of the world’s largest vanadium refiners, to review test work results and consider flowsheet alternatives.
These discussions are ongoing and Dalian Bolong remain engaged. Preliminary discussions on a possible offtake agreement were explored.