Evolving Gold raising $10 million to advance Rattlesnake Hills

Evolving Gold (EVG-V) plans to raise $10 million in a bought deal financing to continue exploring its Rattlesnake Hills project in Wyoming where the company has just finished a major drill program.

A syndicate of underwriters led by National Bank Financial and Scotia Capital agreed to buy 11.1 million units for 90¢ each. Each unit will consist of one share and half of one share purchase warrant.

The drill rigs may have stopped turning for the winter season but investors should be watching out for more news in the coming weeks and months as the assay results from 51 more drill holes come in.

Evolving plans to continue drilling again in the New Year and plans to complete a resource estimate by the end of the second quarter.

The explorer has been intersecting long intervals of gold mineralization and has extended the strike length of the high grade North Stock zone to 240 metres. Drilling shows that mineralization starts in some places less than 15 metres below surface and extends to a depth of 300 metres. In some areas the North Stock target is about 60 metres wide but extends as wide as 90 metres at one point.

One of the latest intercepts in the North Stock diatreme complex was drill hole RSC-039 where 175.3 metres averaged 1.9 grams gold per tonne, including 36.6 metres grading 4.1 grams gold per tonne.

RSC-039 is about 80 metres to the northeast of RSC-020 where 67.1 meters graded 10.8 grams gold per tonne.

RSC-039 is also about 130 metres to the southwest of RSC-003 where 146.3 metres averaged 2.92 grams gold per tonne.

Drill hole RSC-041 intersected 141.7 metres grading 1.56 grams gold per tonne, including 7.6 metres grading 16.41 grams gold per tonne. The company says this hole intersects the southern boundary of the North Stock diatreme complex just above the highest grade portion of the contact zone.

Drill hole RSC-046 was drilled 180 metres vertically below another hole, and intersected 39.6 metres grading 1.52 grams gold per tonne, including 3 metres grading 13.2 grams gold per tonne. Evolving says that mineralization here is related to an intermediate porphyry similar to tone encountered to the east in another drill hole. The company says there is growing evidence that this porphyry system is important in the development of gold mineralization at Rattlesnake Hills.

Evolving says the links between the mineralization at North Stock and the porphyry is opening up mineralization potential for a major untested mineralized porphyry target at depth.

Evolving has also done some drilling on the Antelope Basin target but the grades there have been less impressive so far. Of the latest, RSC-038 returned 61 metres grading 0.62 gram gold per tonne and RSC-035, which intersected 30.8 metres grading 0.83 gram gold per. Hole RSC-035 wasn’t completed due to space caving.

The Antelope Basin mineralization is hosted mostly in diorite intrusion but is also very oxidized. And the company thinks that the character of the mineralization and alteration could be linked to North Stock in some way because of the similarities.