Resolution Minerals (ASX: RML) has received strong support in a $4.5 million placement to fund its upcoming exploration campaign at the 64North project, adjacent to Northern Star’s (ASX: NST) operating Pogo gold mine in Alaska.
Under the placement, Resolution will issue almost 91 million shares at $0.05 each to raise the $4.5 million to fund phase one drilling at 64North which is due to kick off in four weeks’ time.
Speaking with Small Caps, Resolution managing director Duncan Chessell said the company was “very pleased to be fully funded for multiple drill programs with extremely strong support of the raise.”
“With incredible drill targets ahead of us, it’s going to be an exciting year,” he added.
Proximity to world class gold mine
What has got the Resolution team so excited about 64North is its proximity to Northern Star’s world class high-grade Pogo mine, which generates about 300,000 ounces of gold annually at an average grade of 13.6 grams per tonne.
Since the mine began operating in 2006, it has produced more than 4 million ounces of gold, with current reserves exceeding 6Moz.
Recent exploration across Pogo has led to Northern Star discovering the Goodpaster deposit.
To date, Northern Star has firmed up 2.3km of strike at the deposit with mineralisation remaining open in all directions.
According to Resolution, its 64North tenements are immediately adjacent to Goodpaster, with a geophysical survey detecting an anomaly along strike of the discovery within the 64North tenements.
After undertaking due diligence on the project, Resolution officially executed its joint venture agreement with TSXV-listed Millrock Resources in December last year.
Resolution is earning an 80% interest in 64North, with the first 60% to be secured by spending US$5 million on advancing the project annually over four years.
Additionally, Resolution will made US$50,000 payment to Millrock annually as well as issue a total of 38 million milestone shares in tranches.
If Resolution elects to boost its stake in 64North to 80%, the company will obtain development funding and carry Millbrook to first production.
In preparation for the upcoming exploration program, Resolution has established mine access and a camp.
The initial drilling program will begin before the end of the current quarter.
Drilling will comprise 7,500m and target the high-priority anomalies immediately adjacent to the Goodpaster discovery.
“A junior rarely gets the chance to drill next to an operating world class gold mine along strike from recent discoveries,” Mr Chessell said.