Recent drilling has confirmed the tonnage and grade of three gold deposits at Black Swan Gold Mines’ Gabanintha project in Western Australia. In addition, the drill program delineated approximately 165,000 tons of higher grade material averaging 0.26 oz gold in the Canterbury area. Reserves there have been calculated to a depth of 80 ft and the zone is still open along strike and to depth.
The Gabanintha project is scheduled to come into production by mid-August at 500,000 tons per year. This would be sufficient to produce 40,000 oz gold annually, the company claims. Early production will be optimized with high grade material from the Canterbury area to reduce the payback period.
An exploration program will be conducted in the Canterbury area and in the southern extension of the Yagahong North zone while mill construction is under way.
The company has reached agreement in principle for the private placement of $2 million in shares. Bain & Co., one of Australia’s largest independent investment bankers, is the company’s agent. The money will be used to bring the project to full production. No warrants or other considerations have been granted as part of the financing other than a 5.75% finders fee to a leading Australian financial institution.
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