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Noble Mineral Resources raises $34.1m for transition to 150,000ozpa gold producer

Noble Mineral Resources raises $34.1m for transition to 150,000ozpa gold producer

Noble Mineral Resources (ASX: NMG) has exited a trading halt to announce that it has raised A$34.1 million through a share placement comprising 60 million shares at A$0.55 to complete the transition to gold producer.

Proceeds of the raising will be used to complete the refurbishment of the three million tonne per year plant at Noble’s Bibiani Gold Project in Ghana, cover the working capital requirements associated with the start of mining and help fund the extensive drilling program underway.

Commissioning of Bibiani is on track for the December quarter, with production ramping up to 150,000 ounces per annum in 2012.

Steady state cash costs at the project are forecast at A$600-650 per ounce, allowing for robust cash margins at current spot prices, which are sitting about the US$1620 per ounce mark.

An aggressive drilling program using five drill rigs is underway at Bibiani, and is expected to result in an upgraded resource and reserve calculation this quarter.

Results so far suggest the mineralisation at the Straus and Walsh satellite deposits is continuous and may form one pit.

High grade results have also been received from drilling at the main pit. Results from the program will be included in the new resource and reserve estimate.

Previous results from the project included a highlight of 1 metre at 196.9 grams per tonne (g/t) gold from 71 metres, contained within a band of 21 metres at 12.14g/t gold.

The Bibiani Project is located in the world-class Ashanti Gold Belt in Ghana, an area with a gold endowment of more than 30 million ounces.

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