Bema finances more work at Aldebaran

A $10-million financing will enable Bema Gold (TSE) to conduct additional drilling on the Aldebaran property in Chile.

Brokers First Marathon, Nesbitt Burns and Yorkton Securities purchased 2 million shares, in a bought deal, at $5 each and can increase the issue by a further 1 million shares at the same price.

Bema, which holds a 49% interest in Aldebaran, will use some of the proceeds to complete a private placement in affiliate Arizona Star Resources (VSE), owner of the remaining 51% interest in Aldebaran.

The placement includes 1.25 million units at $2.40 per unit (one share plus half a warrant). Each whole warrant allows Bema to buy an additional share at $3 for a 2-year period.

Arizona Star and Bema plan to proceed with a $6-million, 40,000-ft. diamond drill program at Aldebaran to test high-grade gold-copper values returned by deep drilling below the Cerro Casale deposit.

The joint venture has delayed completion of a feasibility study on the Cerro Casale deposit while the drilling is completed.

At last report, Cerro Casale’s minable reserve was estimated at 104 million tons grading 0.019 oz. gold per ton.

Recent deep drilling encountered higher-grade oxide gold values below the deposit, as well as portions of a supergene copper blanket enriched in chalcocite. The flat-lying, enriched blanket has been intersected by six reverse-circulation holes over widths ranging from 50 to 150 ft. grading in the order of 1-1.5% copper.

In addition, at least seven of the deepest holes (from 1,100 to 1,300 ft.) at Aldebaran ended in an unoxidized diorite porphyry grading roughly 0.5% copper and 0.03 oz. gold.

The planned deep drilling program will also test the area around a high-grade interval in hole 176 (138 ft., from 787 to 925 ft., grading 0.52 oz. gold, 0.7 oz. silver and 1.5% copper) in an effort to determine the extent and orientation of the mineralized zone.