Resolute Mining Limited announce an expansion of the capital raising announced on 4 September 2009. The company has agreed to make a placement of 30 million shares at a price of $0.63 per share to M&G Investments to raise A$18.9 million. As a result of the placement to M&G, the Board has decided to re-shape the recently announced Convertible Note issue announced earlier this month. The Convertible Note issue will now be capped at $25 million, for which it has already secured commitments. It was originally proposed to raise between $20-35 million from the Convertible Note issue. Proceeds from the capital raising initiatives will be used to retire debt and for working capital purposes and in particular Resolute’s operational priorities which include the continued ramp up of the Syama Gold Mine in Mali (which began production in June), development of the Mt Wright Gold Mine in Queensland and further development of the Golden Pride Gold Mine in Tanzania.
A further four reverse circulation drill holes (ASRC004-007) for 532m were drilled at the Airstrip prospect following up MIM and recent intercepts of 5m at 5.02g/t Au. Duplicate samples from zones of interest in all four drill holes were submitted to the Ravenswood Mine lab and returned best intercepts of 1m at 1.81g/t Au from 85m (ASRC004) and 3m at 4.96g/t Au from 76m (ASRC006 – parallel zone to the north of 6m at 2.14g/t Au from 65m in ASRC001). It appears width and gold grade both decrease up dip and along strike to the west.
March 31, 2008
A reverse circulation drill sample versus blast hole sample trial was commenced in March. The results of the trial will be used to further refine grade control techniques associated with blast
hole sampling. A full scale plant trial will be conducted on Mt Wright ore towards the end of April 2008. Approximately 50,000 tonnes of ore will be treated. The trial is expected to provide invaluable information with respect to grade control reconciliation and metallurgical properties of the ore and will assist with the design of any circuit reconfiguration requirements that may be required for the processing plant when the operation goes to 100% Mt Wright ore in 2010. Testing the depth of the mineralisation beneath the current modelled ore body at Mt
Wright has been deferred until the following quarter, as the drill rig did not arrive on site until late September. It is planned to wedge holes from the previous drill hole MTWR146, targeting the 460RL. This drill hole intersected approximately 213m of rhyolite breccia with intense sulphidation. These sulphides are generally adjacent to and
present within the gold mineralised zones of the rhyolite breccia.
Advanced or Above