- Magnum Gold (MGI) has announced it’s private placement for C$700,000
- The Vancouver-based exploration company will use the proceeds for further exploration of it’s ‘LH Property’
- The 100 percent owned property, consists of 19 contiguous crown granted claims and seven mineral claims
- Magnum Gold is a Vancouver-based junior exploration company, focused on it’s LH Gold Project in British Columbia
- Magnum Gold (MGI) is unchanged, trading at $0.03 at close
Magnum Gold Corp. (TSXV:MGI) has announced a private placement for C$700,000 which will be put towards its LH Property.
The financing deal consists of C$400,000 in flow through and C$300,000 in non-flow through shares.
Magnum CEO Douglas Mason feels that junior gold companies are very attractively priced. “This is the lowest price we have ever done a funding. We have C$500 million of exploration credits that we have put into the property and the market cap is little over a million. We think there is lots of room for upside.” Mason adds the recent increase in trends in central bank buying as evidence of gold’s value in investment portfolios.
The LH Property is a gold exploration property in British Columbia, located on the east side of Slocan Lake, 7 kilometres south of Silverton.
Another key point, the 100-percent owned property, consists of 19 contiguous crown granted claims and seven mineral claims.
Previous drilling results
In 2022, the company completed a drill program to continue evaluation of multiple high-grade, gold-bearing, pyrrhotite mineralized zones spatially associated with the LH underground workings.
Additionally in 2022, Gold-bearing zones have been previously documented from both underground chip sampling by a previous operator and diamond drilling by Magnum.
At the present time, Magnum has an approved two-year Multi-Year Area Based (MYAB) work permit for its LH Property issued by the Ministry of Energy and Mines and Petroleum Resources.
Under this approval, Magnum proposes to drill an additional six diamond drill holes from two existing pads.
The program is expected to commence in late June to early July dependent upon snow melt conditions.
The proposed 2023 program emphasizes work in anticipation of determination of an initial Resource Estimate. Approximately 1,125 metres of drilling is proposed, anticipated to return additional moderate to high-grade, gold-bearing mineralized intercepts.
As a result, cumulative gold-bearing mineralized volume is expected to extend over 75 metres east-west and to a vertical depth of around 50 metres below surface along the LH vein system.
Previous LH underground workings completed in 2015, 2017, 2019 and 2022, exposed a pyrrhotite-enriched, gold-bearing vein system, subsequently confirmed by 24 diamond drill holes.
The company believes a strong positive correlation exists between pyrrhotite abundance and strongly elevated to highly anomalous gold values.
About Magnum Gold Corp.
Magnum Gold (MGI) is Vancouver-based junior exploration company, focused on it’s LH Gold Project in British Columbia.
Magnum Gold (MGI) is unchanged on the day trading at $0.03.
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