Gold Anomaly Limited (ASX:GOA) Raised A$6 Million to Expedite Drilling at Exciting Crater Mountain Gold Project in Papua New Guinea
Sydney, July 20, 2011 AEST (ABN Newswire) - Gold Anomaly Limited (ASX:GOA) has successfully raised A$6 million via a placement (Capital Raising) to fund drilling at its flagship Crater Mountain gold project in Papua New Guinea (PNG).
Crater Mountain is shaping up as PNG's next major gold discovery, where drilling has intersected mineralisation over wide (130 metres+) intervals, supporting the view that a large bulk tonnage gold deposit exists.
Commenting on the placement, Executive Chairman Greg Starr said, "The Capital Raising closed heavily oversubscribed with a strong response from institutional and high net worth investors in a difficult trading environment, reflecting the increasing confidence that Crater Mountain hosts a substantial gold deposit.
"The recent successful drilling of a shallow, high-grade gold zone beneath the artisanal mine workings further enhances the project's appeal, with hole NEV022 striking 2m @ 98.2g/t gold within a 46 metre mineralised intercept.
"The Capital Raising provides funds for the continuing exploration programme at Crater Mountain. The program will incorporate a number of deep, ~1,000 metre holes seeking the prized feeder system to the higher level mixing zone mineralization that comprises the Main Zone drilled to date, akin to Barrick's (TSE:ABX) Waruwari deposit at Porgera."
The next phase of drilling has commenced with NEV024 which was completed on July 17th at 642.4m. Nev024 was collared 209m and 195m below NEV018 and 019 respectively, 200m northeast of the NEV019 collar, and was targeted to test the mineralization in those holes at greater depths than those previously achieved. A rig with the capability of drilling in excess of 1,000m is due to be mobilized to Crater Mountain at the end of July early August.
Regional reconnaissance exploration has also commenced with work being carried out in the Mase Creek and Awaunita Prospects, which are located 2 km and 6 km east of the Nevera prospect respectively with similar geological and geochemical characteristics. Work currently being undertaken between the Nevera and Mase Prospects is targeted at testing an interpreted link between these two prospects. This work is expected to identify drill targets for future drilling.
New shares issued under the Capital Raising, issued at A$0.04 per share, will rank equally with existing shares on issue and are expected to settle on Monday 25 July 2011 with trading of the new shares commencing on Tuesday 26 July 2011.
Austock Securities Limited acted as lead manager to the Capital Raising.
The trading halt in Gold Anomaly shares will be lifted today.
About Crater Gold Mining
Crater Gold Mining Limited (ASX:CGN) is engaged in the exploration, evaluation and exploitation of gold and other base metal projects. The Company's segments include Croydon, Fergusson Island and Crater Mountain. The Croydon project consists of two sub-projects in far North West Queensland, the Croydon Polymetallic Project and the Croydon Gold Project. The Fergusson Island project consists of two gold exploration projects at Wapolu and Gameta on Fergusson Island, in Milne Bay province, Papua New Guinea. The Gameta Deposit lies within exploration license (EL) 1972. It is located on the northeast coast of Fergusson Island. The Wapolu Deposit lies within EL 2180. The Crater Mountain is an exploration and production project located in the Papua New Guinea Highlands approximately 50 kilometers southwest of Goroka. The project consists of three contiguous ELs, straddling the border between the Chimbu and Eastern Highland Provinces.
Crater Gold Mining
Barrick Gold Corporation