The new funds comprise a placement of 5 million shares (of the balance approved by shareholders at the company's AGM in May) and options at $0.275, with the funds to be used to increase exploration activities at the highly prospective Horseshoe Lights and Kumarina projects in the Gascoyne region of Western Australia.
A recent drilling highlight at Horseshoe Lights includes; 23 metres at 4.2% copper from 43 metres, including 8 metres at 8.6% copper.
Horseshoe Metals has been drilling continuously at the Horseshoe Lights Project since April 2012 and currently has one reverse circulation percussion rig on site, with drilling at Kumarina due to commence in early September 2012 - with a reverse circulation rig planned to complete a minimum of 4,000 metres.
More specifically the drilling focus will be in deeper holes in areas where copper/gold mineralisation has previously been intersected in the North West Stringer Zone and the Main Zone; Test for deep, high grade copper/gold zones down dip and down plunge of the Main Zone, which will potentially be of sufficient grade to support underground mining; and Follow up shallow exploration targets outside of the immediate pit area which have not been adequately tested by previous exploration efforts.
The breakdown of the 5 million options issued to Investmet Limited is:
- 1.667 million options exercisable at $0.35 expiring on 25 May 2013;
- 1.667 million options exercisable at $0.45 expiring on 25 May 2014; and
- 1.667 million options exercisable at $0.60 expiring on 25 May 2015.
Major discoveries in the area
The region in which Horseshoe is currently operating continues to emerge as a major copper district in Australia, highlighted by the fact that Sandfire Resources' (ASX: SFR) massive DeGrussa Copper-Gold mine is less than 100 kilometres away.
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