Following a $4.5 million equity raising last week that welcomed cornerstone investor Delphi Unternehmensberatung AG, Marvel Gold (ASX: MVL) has confirmed continuity of gold mineralisation at its flagship Tabakorole project in Mali.
Results from five diamond holes for 997m at the central zone have confirmed the strike continuity of shallow gold mineralisation identified earlier this year.
Better intercepts were 21m at 2.6 grams per tonne gold from 70m, and 7m at 1g/t gold from 119m in hole 14; and 9m at 1.3g/t gold from 8m, and 8m at 1.9g/t gold from 80m in hole 13.
Marvel managing director Phil Hoskins said the company was “very excited” by the continued shallow, higher-grade results arising from the central zone.
“These new zones of higher-grade mineralisation sit outside of the previously modelled resource and should contribute significantly towards our upgraded resource due in September,” he added.
Assays are pending from seven diamond holes for 1,115m completed in the project’s northwest zone.
These latest results and pending assays are part of a 3,240m diamond drilling program that was designed to follow up on encouraging results generated earlier in the year.
The earlier program comprised 5,400m of reverse circulation and 900m of diamond drilling, which extended the Tabakorole deposit strike length to at least 3.2km.
Some of the better intercepts from the earlier program were 22m at 1.8g/t gold from 77m, 12m at 2.1g/t gold from 18m, and 13m at 2g/t gold from 174m.
Delphi Unternehmensberatung becomes major shareholder
Today’s positive drilling news follows a $4.2 million placement last week that saw Delphi welcomed as a major shareholder.
Delphi and its subsidiary Deutsche Balaton cornerstoned the placement – subscribing for 58 million shares at $0.06 each, which was an 11.1% premium to Marvel’s last traded price of $0.054 on 5 August.
The combined companies will own 11.6% of Marvel.
All-up, Marvel issued 70 million shares under the equity raising at the same $0.06 issue price to raise the $4.2 million before costs.
“The placement price demonstrates the deep value potential in the company’s gold and graphite assets, with the value of the company’s graphite assets to soon be unlocked by our proposed spin-off of the Chilalo graphite project, which has the potential to be highly value-accretive,” Mr Hoskins said.