IRIS Metals (ASX: IR1) is set to make its ASX debut on Thursday following an oversubscribed $7 million IPO that was cornerstoned by resource entrepreneur Levi Mochkin’s investment vehicle NASDAQ Securities Australia.
Last month, IRIS launched the IPO which aimed to raise between $6 million and $7 million via the issue of up to 35 million shares at $0.20 each.
Earlier this year, Mr Mochkin made headlines when he scooped up $360,000 shares in Odyssey at $0.09 each, which was the largest inside purchase in the company in 12 months. The company has reported a gold intercept at its Tuckanarra project of 2.3m grading a whopping 600 grams per tonne.
It appears, Mr Mochkin sees potential in IRIS and the gold market after cornerstoning the company’s IPO and scooping up 5 million shares through NASDAQ – giving him a 5.7% equity.
The company’s board members have also backed the company with executive director Tal Paneth the largest holder in IRIS with his 34.38% stake.
IRIS non-executive chairman Simon Lill sits just under the 5% substantial shareholder threshold with a 4.85% interest. Mr Lill is also non-executive chairman of De Grey Mining’s (ASX: DEG) which hosts the renowned Hemi discovery in WA’s Pilbara.
Executive director Peter Marks has also backed IRIS and owns 2.52% of the company post-listing.
What’s got everyone so keen is IRIS’ Kookynie and Leonora gold projects in Western Australia.
IRIS’ Kookynie project is 180km north of Kalgoorlie and includes approximately 35.5 square kilometres of tenements in central Kookynie and is within the namesake goldfield which has recorded more than 600,000 ounces in historic gold production at 15g/t.
IRIS’ neighbours, the Metalicity Limited (ASX: MCT) and Nex Metals (ASX: NME) joint venture and Carnavale Resources (ASX: CAV) all reported bonanza gold assays within one week of each other in July this year.
Metallicity has since launched an off-market all scrip bid for Nex.
IRIS will be hoping to replicate the success of its neighbours.
As well as the recent discoveries, IRIS’ Kookynie project is also adjacent to both historic and current mines. And within its own tenements, there are more than 50 historic workings with recorded gold production and grades as high as 63.8g/t at the Lily prospect.
The project has seen little modern exploration in recent times and the company’s board has identified a number of underexplored and priority targets.
IRIS’ other main project is in Leonora, which is about 60km northeast of the Leonora townsite and 240km north of Kalgoorlie.
Making up the Leonora project are 41 prospecting licences, which amount to about 71 square kilometres of prospective ground.
The Leonora district has been home to historical production of 13.5Moz from five main mines.
Similar to Kookynie, IRIS’ Leonora tenements have undergone little modern exploration despite their proximity to known mines.
IRIS’ Chain Bore tenements had historical gold hits of 30m at 2.14g/t and its Little Dipper target to the south sits at the eastern border of Golden Mile Resources’ (ASX: G88) Benalla Wanghi project, which earlier in the year reported an aircore interval of 33m at 1.60g/t Au from 48m, including 16m at 2.95g/t from 61m.
Little Dipper has recorded historical drill hits up to 5m at 12.5g/t gold almost from surface.
Leonora is undergoing consolidation with Dacian Gold (ASX: DCN) implementing a scheme of arrangement with NTM Gold in November last year, with the merged group having a combined value of approximately $280 million at the time.
Kin owns the 1.23Moz Cardinia gold project in Leonora and its tenements surround IRIS’ Leonora ground.
Advancing gold projects
Following its IPO and ASX listing, IRIS plans to get boots on the ground as fast as possible with reverse circulation drilling at the company’s Kookynie project scheduled to start before the end of the month.
Drill-ready targets have already been defined at Kookynie, and IRIS is planning further aircore and RC programs to develop resources at both projects.
Additionally, detailed aeromagnetic surveys have already been completed over Kookynie and Leonora tenements with data interpretation and analysis anticipated shortly after IRIS’ ASX listing.
This data will be incorporated with other information gathered from recent site visits and desktop studies to firm up further targets.
IRIS anticipates it will be generating a steady news flow from its activities once it has officially listed.