Orinoco Gold will commence the exploration decline at its high grade Cascavel Gold Project in Brazil after raising $2.1 million.
Orinoco Gold (ASX: OGX) will commence the exploration decline at its high grade Cascavel Gold Project in Brazil after raising $2.1 million through its share placement and entitlement issue.
Ordering of the necessary equipment for the exploration decline has commenced and first ore is expected to be removed from the exploration decline in mid April.
The cost of the 2 metre by 2.5 metre exploration decline will be about A$2,020 per metre advanced. It will commence from the Cascavel winze and will progress across strike and down-dip towards the end of the Mestre winze where the mineralised zone appears to thicken and a 500 kilogram bulk sample grading 39.3 grams per tonne gold was taken from a high grade shoot.
The focus of this exploration campaign at Cascavel is an initial resource area of approximately 250 metres by 300 metres.
Infill drilling in this area, including underground drilling from the exploration decline is planned to commence once the remaining shortfall from the entitlement issue has been placed.
The Cascavel system is known to be open down-plunge and along strike.
The funds raised will also be used to secure the company’s 70% interest in the Curral de Pedra Project by paying the remaining cash portion of the final retention payment, being US$650,000 (currently due April 2014) and to progress the next phase of exploration and evaluation of the Company’s other Brazilian exploration projects in the Faina Goldfields.
TRF Price at posting:
8.0¢ Sentiment: LT Buy Disclosure: Held
