Augur Resources (ASX: AUK) has completed a security purchase plan and placement raising A$1.1 million to continue a Pre-Feasibility Study of the Randu Kuning deposit at the company's Wonogiri project in Indonesia.
Under the security purchase plan, shareholders subscribed for 10.5 million shares at $0.04 each raising $420,000 of the total.
Augur also placed a further 17.59 million shares at $0.04 each with a range of Australian and overseas investors to raise an additional $703,750.
Grant Kensington, managing director, commented on the positive result: "Given the current investment environment it is extremely encouraging to get the support from both current shareholders and new shareholders.
"The completion of the capital raising represents strong support for the Wonogiri gold and copper project in central Java."
Augur is aiming to complete an initial pit design during 2012 and the Pre-Feasibility Study by May 2013.
Augur recently defined an initial Resource for the project of 1.54 million ounces gold equivalent at a low discovery cost of $3.05 per ounce at the Randu Kuning deposit.
The breakdown is 1.01 million ounces of gold and 200 million pounds of copper, with the Resource from surface.
Importantly, more than 50% of the gold Resource is already in the high confidence Measured category.
There is still plenty of exploration upside with five significant near surface targets, and mineralisation open at depth as well as to the south and west.
Drilling has indicated extensive gold-copper porphyry mineralisation from surface to below 400 metres depth.
There is also high prospectivity of further mineralisation to the south and north of Randu Kuning.
Metallurgical test work has also shown the project's capability of producing an 82.7% recovery of gold and 94.1% recovery of copper, with the possibility to increase gold recovery using additional gravity recovery.
Initial concentrate results returned over 19% copper and 2 gold ounces per tonne with silver credits.
Optimisation work has begun to increase the concentrate to greater than 20% copper, with early results returning 21.2% copper and 2.9 gold ounces per tonne.
Increased Wonogiri stake
Late last month Augur revealed it had met the required US$3.5 million (A$3.3 million) expenditure to increase its stake in the 3,928 hectare Wonogiri project to 80%.
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