Proceeds from the company’s recent placement and issue of unlisted options, to total $3.2 million, will be used to fund expanded exploration and drilling programs at exploration projects in Burkina Faso, including the Dassa gold discovery.
Geophysical surveys will also be undertaken at its 100%-owned Strickland Copper-Gold Project in Western Australia.
Chief executive officer Howard Golden said: “This capital raising puts Arrow in a strong position to explore its high-quality portfolio of assets well into 2021.
“There are seasonal issues with working in Africa, but the nice thing is that when it starts to rain around July/August in West Africa that’s the best time to get on the ground in Western Australia.
“We’ve got a cricket versus football season strategy when it comes to exploration.”
The company has a 3,000-metre drilling program planned to start in July aimed at expanding its Dassa gold discovery.
Target definition acceleration is planned on four additional Burkina Faso projects as well as EM surveys planned for quarter three 2020 at its Strickland Project in Western Australia.
Golden said: “We’ve got a packed schedule coming up, but we’re excited to get out there because it’s been a frustrating few months.”
The company has been able to keep its team on the ground in Burkina Faso intact and is ready to hit the ground running in early July.
Golden said: “There was some question about whether we could get expats into Burkina Faso and the bad news is no.
“But the good news is that it’s okay because we have a highly skilled team there and they can hit the ground running, they don’t need us to tell them what to do.”
Dassa gold discovery
The Dassa discovery in Burkina Faso is a zone of mineralisation that extends for at least 3 kilometres and previous RC drilling has produced results as high as 3 metres at 15.1 g/t gold, including 1-metre at 44.7 g/t.
Golden said: “We were pretty excited about that and then the whole COVID-19 thing happened.
“It’s a really interesting discovery, about 3 kilometres long and there’s an untested gap in the middle of it.
“Now we’re ready to get in there, drill the gap and try to fill it in.”
Auger drilling is also planned to test the extension of the mineralisation along a zone that could extend the discovery to 7 kilometres in length.
Burkina Faso targets
Elsewhere in Burkina Faso, the company will undertake soil and auger sampling programs on an additional four 100%-owned licence blocks.
- The analysis of stream sediment samples and follow-up as appropriate in quarter three 2020 at Boulsa;
- Soil and auger sampling to be followed up by RC drilling in quarter four 2020 at Divole East;
- Soil sampling and follow-up work indicated by soil results in quarter four 2020 at Nako; and
- Soil sampling and any follow-up work as indicated by soil results in quarter one 2021 at Dyapya.
Golden said: “We have four other projects that we’ve targeted exactly the same way [as Dassa] so we feel just as comfortable about them but of course we have much less information.
“We’ll be analysing some samples that we’ve already collected, gathering some new samples and course following those up in the same systematic way, mapping, surface sampling and then moving on to drilling when we get good results.”
Strickland Copper-Gold Project
Golden said: “Our primary project in WA is the Strickland Copper-Gold Project.
“It’s about 800 square kilometres and has two sections - one which we believe is prospective for gold and one that we think has potential for copper-gold.”
The recent analysis of historical data at the project resulted in the identification of three zones of highly anomalous copper-gold-silver-zinc mineralisation in shallow sampling.
“The three targets have shallow anomalies of copper, gold, silver, zinc and a few other interesting elements like barium that are indicative volcanogenic massive sulphide (VMS) deposits similar to some others that are nearby in the extension of the Greenstone belt,” he said.
Some of the proceeds from the capital raising will be used for electromagnetic (EM) surveys over these targets in quarter three 2020.
The CEO said: “Electromagnetics look for conductive minerals like the kind of sulphides that occur in a VMS deposit, and depending on the results we’ll follow them up in the most appropriate ways – most likely reverse circulation drilling.”
The company recently received commitments from qualified sophisticated and professional investors to raise $2.2 million via a placement of up to 366,666,666 fully paid ordinary shares in the company at an issue price of 0.6 cents per share.
In addition, Arrow has issued unlisted convertible notes to raise a further $1 million, for a total raising of $3.2 million, which is subject to shareholder approval at a general meeting of shareholders scheduled on or around July 31, 2020.