A brokered private placement will enable Arizona Star Resource (VSE) to fund additional exploration on the Aldebaran gold property in Chile.
The placement totals 1.5 million units at 60 cents per unit for gross proceeds of $900,000. The units include a share plus a warrant exercisable at 60 cents in the first year and 75 cents in the second.
Arizona Star is earning a 51% interest in Aldebaran from a Chilean company. To do so, it must spend US$4 million over three years and pay US$2 million on or before the end of the third year. Since signing the agreement in early 1991, it has spent about $1.2 million.
Drilling on the Cerro Casale deposit began Feb. 19. Arizona Star expects to complete 13,000 ft. of reverse circulation and 1,500 ft. of diamond drilling before the end of April.
Prior to beginning this year’s drilling program, preliminary reserves at Cerro Casale were about 75.1 million tons grading 0.025 oz. per ton based on a cutoff of 0.018 oz. gold.
About 69% of the reserve is oxidized and the deposit remains open to the south, southeast and to depth.
In addition to expanding Cerro Casale, drilling will target a new zone of mineralization as well as the Estrella gold zone where previous drilling intercepted 118 ft. grading 0.035 oz. gold.
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