Kainantu Resources Ltd (TSX-V:KRL) (KRL) has filed a Technical Report entitled "Kili Teke Cu-Au Project, Papua New Guinea" relating to the company's proposed acquisition of the Kili Teke project from Harmony Gold (NYSE:HMY) Exploration Limited, initially disclosed in April 2022.
The independent report was written by Graeme Jon Fleming of GJF Geological Services and fulfils one of the few remaining conditions precedent for KRL to acquire the project.
The report confirmed the most recent mineral resource estimate (MRE) for Kili Teke that was completed by Harmony in 2017. The estimate detailed an inferred mineral resource of 237Mt @ 0.34% copper (Cu), 0.24 g/t gold (Au) and 168ppm molydenum (Mo), for a total of 802kt of Cu, 1.81Moz of Au and 40kt Mo (at a 0.2% Cu cut-off).
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The MRE does not include skarn mineralisation into the resource, which is expected to increase the Cu and Au grades by 5% and 4%, respectively, and to increase the respective metal contents by 11% and 10% – representing significant upside potential.
KRL said it has conducted a preliminary mining study and identified the opportunity to upgrade the open-pittable resource by infill drilling and it believes that an open-pit mine could generate robust economic returns if more high-grade mineralisation can be delineated with the upper reaches of the deposit.
KRL also said that plans to raise C$2.5 million via a non-brokered private placement of up to 22,727,273 units of the company, at a price of C$0.11 per unit, has been extended up to January 24.
The first tranche of the offering, which was announced on October 19, 2022, closed on November 3, and the company said it would update on the progress of the second and final tranche of the offering, of around C$0.8 million, in due course.
Matthew Salthouse, CEO of KRL, commented: "The finalisation of the Technical Report marks a significant step forward and fulfilment of one of the few remaining conditions precedent for KRL to acquire the Kili Teke project.”
“KRL expects to complete its current capital raise in the near future. Once complete and payment made, the only conditions remaining for the completion of the transaction are local regulatory approvals and the transfer of certain rights."
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