23rd Mar 2015 14:44
LONDON (Alliance News) - Noricum Gold Ltd Monday said it has bought the the Walchen VMS copper, gold and silver project in Austria for GBP360,000 in shares and cash, and raised GBP478,000 in a placing of 239 million shares priced at 0.2 pence each to advance the new acquisition.
The gold exploration and development company, which focuses on Austria, said it will pay GBP10,000 in cash for the acquisition, with the remainder to be financed by issuing 175.0 million new shares at 0.2 pence per share.
Noricum shares were down 11% at 0.201p on Monday afternoon.
"The directors of the company would have liked to participate in the placing but are prohibited from participating in the placing as they are subject to a close period as defined by the AIM rules for companies. It is the intention of the directors to subscribe for approximately GBP22,000 of new ordinary shares of no par value, as soon as the company is no longer in a close period," Noricum said.
According to Noricum, the VMS deposit at the Walchen gold project consists of two main ore horizons. They have a horizontal extension of three to four kilometres and an average thickness of 0.5-four metres.
The average grade of the Walchen ore mined from 1942 was 1.71% copper, 3.23% zinc, 2.48% lead, 83 grams per tonne silver, 0.5 grams per tonne gold.
"Additional recent assays have shown that the pyrite and pyrrhotite can carry nickel and cobalt," the company said.
In addition, Noricum said it has received recults from the Schonberg gold project with mineralisation intersected by the final drill hole.
The results revealed two metres at 2.26 grams per tonne gold, 2.8 grams per tonne silver, 0.8% copper from 129.5m in drill hole BG2B.
The results included half a metre at 5.29 grams per tonne gold, 2.87% copper, and 0.35% bismuth.
"Further work will be undertaken to better understand the deeper massive sulphide targets that have yet to be hit with the drill bit," the company said. "Further high grade results received from more detailed underground grab sampling of the Barbara level of the Brandegger vein system returned grades up to 36.7 g/t of gold, 31.8 g/t of silver and 4.63% copper."
By Samuel Agini; [email protected]; @samuelagini
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