Diatreme Resources (ASX: DRX) has been granted a trading halt by the ASX pending an update on capital raising negotiations, with the company's shares placed in pre-open.
Diatreme has not yet indicated where the potential capital injection will be allocated, but the company has been making some impressive progress at the Cyclone zircon project in Western Australia recently.
Earlier in the year Diatreme delivered an upgrade of Heavy Mineral Resource estimate released as part of the Prefeasibility Study, which included greater than 80% of resource now classified in the high confidence Measured category.
Highlighting the potential of the project, the current Mineral Resource estimate is 136Mt at 2.3% HM at a 1% HM cut-off grade, containing 3.1Mt HM.
The PFS pit design contains a Probable Ore Reserve of 97Mt at 2.5% HM, including 0.79% Zircon, containing 2.4Mt HM, including 770kt of Zircon.
The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Friday 6th July.
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