Now that it’s closed a $5-million private placement, Kimber Resources (KBR-T, KBX-x) will be looking to bolster its gold position in Mexico with the money going into the ground at its Monterde and Setago properties in the Sierra Madre.
To raise the sum, the Vancouver- based company sold 4 million units at $1.25 apiece with each unit made up of a share and half a warrant. A full warrant has a strike price of $1.80 for two years as of Sept. 24.
Kimber’s flagship is the Monterde property, roughly 260 km southwest of Chihuahua city in the heart of the Sierra Madre gold-silver belt.
The property includes the past-producing Carmen mine, which operated from 1937 to 1945, turning out roughly 50,000 oz. gold.
So far, three gold-silver deposits have been discovered there with the most advanced being the Carmen deposit. Kimber is currently studying plans to mine the deposit via open-pit and underground methods.
Carmen hosts measured and indicated resources of 33.2 million tonnes grading 0.75 gram gold and 39 grams silver per tonne for 1.4 million gold-equivalent oz.
Another deposit, Carotare, has 2.7 million tonnes of measured and indicated resources grading 0.82 gram gold and 29 grams silver for 105,000 gold-equivalent oz.
The third deposit, known as Veta Minitas, hosts 877,000 tonnes of measured and indicated resources grading 0.72 gram gold and 91 grams silver for roughly 54,000 gold-equivalent oz.
In all, Monterde has a measured and indicated resource of 1.5 million gold-equivalent oz. and an additional 422,000 gold-equivalent oz. in the inferred category.
Most recent drilling has focused on proving up Veta Minatas. At the beginning of the month, the company announced results highlighted by 4 metres grading 13.8 grams gold and 24.6 grams silver.
As for Setago, it sits roughly 15 km west of Monterde. The prospect consists of a colour anomaly with strong hematite and lesser silicic alteration hosted in felsic volcanic rocks.
In Toronto at presstime, Kimber shares traded at $1.11 in a 52-week window of 62-1.98. The company has 58 million shares outstanding.
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