Caprice gets $1.5m boost to expand drilling at Island gold project

An early exercise of unlisted options has raised more than $1.54m for Caprice Resources, enabling an expanded follow-up drilling program at the Island gold project.

Caprice is fully funded to expand the Phase 2 drilling program at the Island Gold project in WA. Pic: Getty Images

• An early exercise of unlisted options brings Caprice Resources’ cash position to $4m

• The explorer will use the funds to complete Phase 2 RC holes and expand the program

• Assays are expected during March

 

Special Report: With the current gold price sitting over $4,500/oz it couldn’t be a better time to start drilling. Explorer Caprice Resources is looking to do just that at the Island gold project in WA’s Murchison district.

The development comes on the heels of an early exercise of unlisted options, which raised more than $1.54m, lifting Caprice Resources’ (ASX:CRS) available funds to $4m.

It sets the company up perfectly for the next round of drilling, consisting of 40 reverse circulation drill holes for around 5000m at the Island gold asset which form part of the Phase 3 program pencilled in for March.

Last year, Phase 1 drilling intersected thick high-grade gold intersections from testing the previously unrecognised, cross-cutting ‘Break of Day’ gold targets along 5km of strike.

Impressive results such as 28m at 6.4g/t gold from 114m and 27m at 3g/t gold from 48m were returned at Vadrians Hill as well as 9m at 2.8g/t gold from 27m at Baxter/Golconda.

Goal to deliver maiden resource

Caprice’s CEO Luke Cox said the early exercise of $1.5m in options illustrates the support for the Island gold asset.

“Our Phase 2 RC drill program will continue to test the highly prospective structural corridor through Baxter, Golconda and Vadrians Hill, before moving north to test additional cross-cutting structures,” he said.

“The objective is to deliver a potentially significant maiden resource in the coming months.

“As demonstrated in early results, we have identified more than seven structures analogous to the high-grade gold setting intersected at Vadrians, and these targets have never been drill tested.”

New tenement grants and desktop reviews

The Island gold project and the surrounding gold mines are within the north-south striking Meekatharra–Cue–Mt Magnet greenstone belt of the Western Australian Murchison Goldfields.

The greenstone belt comprises a succession of steeply dipping and intensely deformed plus interlayered mafic and ultramafic extrusive and intrusive rocks, felsic volcanics and banded iron formations hosting gold and other metals.

CRS has submitted applications for additional tenure contiguous with the Island project, increasing the footprint by 43%.

The explorer plans to work towards granting of the tenement as early as practicable, whilst concurrently progressing desktop reviews and targeting.

This article was developed in collaboration with Caprice Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.