Infill drilling by
Highlights from the program, which included 10 core holes totalling 2,176 metres, are as follows:
— Hole 40 returned 11.7 metres (from 26.3 metres below surface) grading 3.48 grams platinum, 2.69 grams palladium, and 0.28 gram gold per tonne. A 58.8-metre section, beginning at 102.2 metres down-hole, returned 0.42 gram platinum, 0.52 gram palladium, and 0.11 gram gold.
— Hole 46 returned 19.1 metres (from 92.7 metres) grading 1.81 grams platinum, 1.95 grams palladium, and 0.27 gram gold. The hole also encountered 5 metres (from 201.5 metres) of 3 grams palladium, 3.21 grams platinum and 0.39 gram gold.
— Hole 48 returned 48.9 metres (from 74.8 metres) averaging 1.03 grams platinum, 1.25 grams palladium, and 0.17 gram gold. A deeper, 6-metre interval (from 143.4 metres) ran 0.97 gram platinum, 1.2 gram palladium, and 0.17 gram gold.
The remaining holes generally varied between 1 and 3 grams combined platinum-palladium-gold over widths of 1-25 metres; minor nickel and copper credits were also cut. Holes 40-43 were sunk at a dip of 55 to the east, whereas holes 44-50 were drilled vertically.
The holes are part of a new joint effort between Anooraq and
Anglo American contributed the northern portion of its adjacent Overysel farm, and has committed to treat and dispose of platinum-group-element ore from any eventual operation at its recently completed smelter at Polokwane, 80 km east of Drenthe. Anooraq will also contribute its Witrivier farm, immediately to the northeast, should the Drenthe deposit extend there.
The two companies intend to carry out an extensive, multi-rig drill program in early 2004. Infill drilling will continue to target the Drenthe deposit, with delineation drilling planned for the southern extent of the deposit on the Overysel farm.
At last count, inferred resources at Drenthe totalled 99.4 million tonnes grading 0.6 gram platinum, 0.63 gram palladium, 0.012 gram rhodium and 0.06 gram gold per tonne, plus 0.16% nickel and 0.1% copper. The estimate is based on a cutoff grade of 0.5 gram PGEs plus gold. The deposit remains open.
To help fund the work, Anooraq has arranged to raise $20 million via the private placement of 9.5 million units priced at $2.10 apiece to qualified investors. Each unit comprises one share and half a warrant, with each whole warrant good for one share at $2.50 per share until June 1, 2005.
Desjardins Securities, agent for the financing, will be paid a cash commission equal to 6% of the gross proceeds. The agent will also receive broker warrants good for up to 6% of the total number of shares issued.
The warrants issued under the offering would expire within 30 days of Anooraq’s closing share price on the TSX Venture exchange, exceeding $5 for any 10 consecutive trading days.
Subject to final agreements and regulatory approvals, the financing is expected to close by year-end. Following the financing, Anooraq will have 52.3 million shares issued and outstanding.
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