Solstice Minerals successfully raised A$12 million at 20c per share, and commenced trading at 9am AWST with the shares opening up 30% at 26c within the first few minutes of trade, despite a market that plunged 1% at open ahead of a critical Reserve Bank of Australia meeting that could see interest rise for the first time in years.

 

The shares were still 23c at the time of writing.

 

The company, which is headed up by executive director and geologist Alastair Morrison, owns the Yarri, Kalgoorlie, Yundamindra and Ponton projects, all located within 250km of Kalgoorlie.

 

The primary focus is on orogenic-style gold mineralisation, however the Kalgoorlie project is also prospective for komatiite nickel sulphide mineralisation.

 

Morrison said that with $17 million in the bank, the company was well capitalised to unlock the potential of its projects. 

 

While it intends to take a belt-scale exploration approach over some 2600sq.km of tenure, its initial focus will be on the Hobbes licence, within the Yarri project, where drilling as confirmed the presence of supergene and primary gold mineralisation.

 

Yarri has a long exploration history, however the work has been hampered by a patchwork of disjointed ownership, with many exploration programs restricted by tenement boundaries. 

 

Drilling is expected in the near-term, with a mix of diamond and RC to support a maiden resource.

 

Morrison said historical drilling was limited, and often ineffective, particularly the wide-spaced intercepts of the primary mineralisation.

 

Despite that, a supergene blanket has been defined over at least 1km of strike, with a width of 400m and thickness of up to 30m, starting as little as 40m below the surface.

 

High-grade supergene mineralisation of up to 22m at 3.22 grams per tonne gold from 45m, has been recorded, and 25m at 2.52gptr from 97m, over 9m at 7.7gpt from 129m in the primary zone.

 

Preliminary metallurgical tests showed good recoveries for both the oxide and primary mineralisation of 97% and 98% respectively.

 

Hobbes remains open in all directions.

 

The initial infill program comprises 4500m of RC and 1800m of diamonds.

 

The rigs will then focus on poorly-tested prospects in the immediate area, and then the Statesman Well prospect 25km to the northeast.

 

Nickel sulphide drilling at Ringlock Dam will commence in the December quarter.

 

Ringlock Dam contains two known nickel prospects, along the Black Swan complex, Including 750m of inadequately-tested strike at the GSP prospect.