Breaker Resources continues to gain momentum with its Bombora gold resource in Western Australia following a $6.3 million raising to fund a pre-feasibility study (PFS).
The company identified the Bombora resource in March 2016 following three phases of reverse circulation (RC) drilling along a six-kilometre long gold system within the Lake Roe gold project.
Breaker secured a mining lease for the Lake Roe project from the Department of Mines, Industry, Regulation and Safety (DMIRS) in March. The project is adjacent to Saracen Minerals’ Carosue Dam mine, 100 kilometres east of Kalgoorlie.
The $6.3 million raising comprised a placement of 21 million shares at a price of 30 cents a share, a 14.3 per cent discount to the company’s last closing price of 35 cents before the deal. Settlement of the placement is set for May 21.
A further resource update is planned for July 2019 ahead of completion of the company’s PFS later in the year.
Breaker plans to use the funds raised for drilling aimed at extending the existing resource, to advance the open pit PFS, and for further exploration drilling at Lake Roe.
Bombora’s maiden JORC mineral resource was released in April 2018 and updated to 24.8 million tonnes for 1.08 million ounces of contained gold at an average yield of 1.4 grams of gold a tonne in September 2018.
Breaker has rounded this 1.08 million tonne figure to 1.1 million ounces overall to reflect the company’s confidence in the resource.
“The 1.1 million ounce resource remains open in all directions and we are confident that this will continue to grow on the back of the aggressive drilling now underway,” Breaker executive chairman Tom Sanders said in March.