Hill End Gold (ASX: HEG) has received strong support out of Malaysia to continue its exploration programs, raising $1.36 million through a placement of 170 million shares at $0.008 each to investor Soh Han Chuen.
Chuen is a resident of Malaysia. Proceeds will also be used for working capital and for the acquisition of high potential growth opportunities.
The first tranche of 125 million shares will be placed on or before 5 August 2013 while the second tranche of 45 million shares will be placed on or before 2 September 2013.
These shares will be issued under the Company's 7.1 and 7.1A capacity, which equates to 25% of its current issued capital.
On allotment, Soh will hold 19.9% of the company's capital.
Hargraves Gold Project
At the wholly-owned Hargraves Gold Project in New South Wales, a conceptual project development plan is being finalised for submission to the State Government.
The project is 30 kilometres south-west of Mudgee. The resource estimate for Big Nugget Hill is 2.9 million tonnes at 2.7g/t gold for 245,000 ounces.
Open pit designs using a base case gold price of $1,450/oz indicate that the Hargraves project would produce 1.2 million tonne of ore at 2.9 g/t gold (100,000 oz).
Mining at 300,000 tpa provides an average annual production of 25,000 ounces. Waste to ore ratio is approximately 11:1 over the life of mine. The pre-development study incorporates both Indicated and Inferred resources.
Process design studies indicate the processing circuit can be built at a very low capital cost.
HEG said that as neither whole ore flotation nor cyanidation is required, capital costs and operating costs are significantly reduced and any potential environmental impacts minimised.
A design for the Hargraves plant has been completed which includes the location for a ROM stockpile, crushing, milling, gravity separation and administration buildings.
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