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Chesser raises funds for gold hunt

31st March 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Gold hopeful Chesser Resources will raise A$12-million in a private placement to institutional and sophisticated investors, to fund drilling at its Diamba Sud gold project, in Senegal.

The company will place more than 115.2-million shares, at a price of 10.5c each, under the company’s existing placement capacity.

“The strong support received from existing and new investors is a strong endorsement of the excellent Scoping Study results which demonstrate that Diamba Sud gold project represents a potential long life, technically simple, low risk and highly profitable mining operation,” said Chesser MD and CEO Andrew Grove.

“The placement will enable Chesser to increase the already significant value defined at Diamba Sud via further exploration drilling programmes focussed on defining the new discovery at Karakara and extending the gold resources at Areas A and D as well as progressing environmental and definitive feasibility studies at Diamba Sud.

“Our 15 000 m to 20 000m drilling programme underway is progressing well with the first results from follow-up drilling of the high-grade Karakara discovery expected in April 2022.”

A recent scoping study into the Diamba Sud project estimated that it would produce 704 000 oz of gold over a seven-and-a-half-year mine life, at an average all-in sustaining cost of $820/oz, with 244 000 oz to be delivered over the first two years of production.

The scoping study estimated a post-tax net present value of A$419-million and an internal rate of return of 59%, and estimated a pre-production capital cost of $159-million, which included a $23-million contingency.

The scoping study is based on the 781 000 oz of gold maiden mineral resource inventory covering Area A and Area D deposits, and a standard two-million-tonne-a-year carbon-in-leach operation.

Edited by Creamer Media Reporter

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