Rumble Resources Ltd (ASX: RTR) has moved quickly to raise A$40 million to fast track the advancement of its major Zinc-Lead discovery at the Earaheedy Project in Western Australia.
Managing Director, Shane Sikora, said the new share Placement provides the company with the resources to fully scope the major discovery, including a significantly scaled up diamond core and RC drilling programme set to commence over the coming weeks and to begin initial metallurgical test work and other studies.
He said the company will also be able to undertake work at its other projects, which have also been prioritised with the objective of defining further Tier 1 discoveries, as well as funding working capital.
The company is pleased to welcome new major institutional and well known significant sophisticated investors as Rumble shareholders,” Mr Sikora said.
“We see the strong support from the Placement as vindication of the company’s pipeline of projects strategy, with a number of years of systematically advancing a number of exciting projects which led to the major discovery at the Earaheedy Project.
“The company looks forward to rapidly advancing the major discovery and advancing the company’s other projects, which also have Tier 1 potential.”
Ashanti Capital Pty Ltd and Bell Potter Securities Limited acted as Joint Lead Managers to the Placement.
Earaheedy is located approximately 110km north of Wiluna, Western Australia, where Rumble owns a 75% of licence E69/3464. In addition, Rumble has a single contiguous exploration license application ELA69/3787 (100% RTR) covering the known strike extent.
Since acquiring an option on the Earaheedy Project in October 2017, the company has systematically advanced the project which has subsequently highlighted a new major Zn- Pb discovery.
On April 19, 2021, the company released the initial assay results of a RC drilling programme that confirmed a major Zinc-Lead discovery at the Chinook Prospect, within the Earaheedy Project. Results include:
- Hole EHRC050 – 34m @ 4.22% Zn + Pb from 66m in a Vertical Hole (True Width), which includes 17m @ 6.65 % Zn + Pb from 73m with a higher-grade core zone of 14m @ 5.02% Zn, 2.03% Pb (7.05% Zn + Pb) from 76m.
- Hole EHRC044 – 21m @ 4.31% Zn + Pb from 61m in a Vertical Hole (True Width), which includes 10m @ 5.02 % Zn + Pb from 67m
Of the 26 holes drilled during the recent drill programme, 26 drill holes out of 26 intersected visual Zn-Pb mineralisation. Assay results from the remaining 24 holes are anticipated to be available and announced in a few weeks’ time.
The Chinook Prospect at Earaheedy has the potential to be at the upper end of the existing exploration target (refer below) based on the consistent grades (4% – 5% Zn + Pb), the true thickness (up to 34m vertical), the intersection of Zn-Pb over 2km of strike, the width over 1.1km and the mineralisation being open in all directions. Of importance is the shallow orientation of the Zinc-Lead mineralisation, which is suggests potential for larger-scale open cut mining scenarios.
Exploration results have highlighted the potential for a very large-scale (Tier 1) Zinc-Lead System as the Chinook Prospect drilling has only tested 2km of the 45km of prospective mineralised strike underlining the potential to delineate multiple large tonnage, shallow (open pit) deposits throughout the Earaheedy Project.