Codrus poised for Bull Run at gold drilling on raising $1.24m

A $1.24m placement has furnished CDR with funds to investigate six new gold targets at Bull Run.

With $1.24m cash in hand, Codrus is taking aim at six new gold targets at Bull Run. Pic: Getty Images

• $1.24m raised in placement with commitments from sophisticated and professional investors

• Six priority gold targets of up to 500m strike each for total combined strike of 2km

• Contract signed with Integri-Core US LLC, drilling to begin by end of May

Special Report: With gold prices hovering around US$3230 an ounce, Codrus is keen to delve deeper into six prospective gold targets at the Bull Run project in Oregon, US.

A placement that raised $1.24m has furnished Codrus Minerals (ASX:CDR) with the cash needed to pursue its exploration ambitions at the gold project.

Leveraging data from soil and rock chip sampling programs and an historical drilling result of 20.5m at 3.53 g/t gold with a section grading 6.9m at 9.31 g/t, Codrus has selected six targets to investigate.

Each target stretches up to 500m in strike length, for a combined total strike of about 2km.

At the Eldorado zone, Codrus has collected rock chips up to 28 g/t gold and 1.5% copper, with similar results of up to 60 g/t gold and 2.5% molybdenum at Lady May zone.

“This raising provides Codrus with the ability to accelerate drilling and unlock value at our Bull Run gold project,” Codrus executive chair Greg Bandy said.

“Coinciding with the recent permit approvals, a drilling contract with Integri-Core and a good weather window means we can hit the ground running almost immediately.

“We thank our existing shareholders for their continued support and welcome our new ones on this exciting journey.”

Gold price expected to reach new highs

Gold has been on the rise for the last year or so but has shot up dramatically in the past few months as investors piled into the safe-haven commodity in the face of economic turbulence.

Goldman Sachs says the recent 5% drop in gold prices is a temporary setback.

The financial institution points to a huge increase in central bank purchases of gold since the freezing of Russian assets in Europe demonstrated the vulnerability of cash reserves.

According to Goldman Sachs Research, emerging market central banks are still playing catch up with their peers in developed markets – China holds just 10% of its reserves in gold, compared to 70% in the US, Germany, France and Italy.

The Research arm of the firm is predicting gold will rise to US$3,700 a troy ounce by the end of 2025, expecting central banks to buy tonnes of the precious metal each month.

This article was developed in collaboration with Codrus Minerals, 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.