Shares in King River Resources rose 20 per cent today after the Western Australian company said it would begin exploration activities next month, following COVID-induced delays.
King River said a relaxation in coronavirus restrictions would allow the company to accelerate its 2020 exploration program, which comprises the Mount Remarkable gold project in the East Kimberley and the Treasure Creek copper-gold project in the Northern Territory.
The company last month launched a share purchase plan to raise up to $8.2 million, with $2.5 million to go towards Mount Remarkable exploration and $1 million towards Treasure Creek.
Activities will begin in August and include 2,500 metres of reverse circulation drilling at Mount Remarkable where multiple high-grade gold results have been returned, King River said.
The drilling will initially target potential high-grade extensions of the Trudi vein, where King River’s previous drilling had intersected gold mineralisation of up to 4 metres at 113 grams per tonne of gold.
A 2,000 metre RC drill program has been planned for Treasure Creek, which is part of the company’s Tennant Creek assets.
King River will also use proceeds from the SPP to complete a prefeasibility study for its flagship Speewah Specialty vanadium project in the East Kimberley.
The company plans to scale the Speewah project to high purity alumina (HPA) production at a later stage, but says it is not part of the prefeasibility study.
Shares in King River were trading 13.3 per cent higher at 1:40pm AEST to 3.4 cents.
