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Compass Gold (TSXV:CVB) completes $700,000 financing; prepares deeper drilling at Tarabala

Market News, Mining
TSXV:CVB
05 January 2023 08:45 (EDT)

Source: Compass Gold Corp.

Compass Gold Corp. (CVB) has completed its previously-announced private placement financing.

The company is preparing to launch a follow-up drilling program to test previously-identified mineralized sections at depth along the Tarabala Trend on its Sikasso Property in Southern Mali.

Field teams will be mobilized to prepare drill pads for follow-up deeper drilling at the Tarabala prospect, including where metallic screen fire assaying reported 7m at 14.13 g/t Au.

Drilling will include 2,000 m reverse circulation (RC) and 600 m diamond core drilling.

The drilling program will focus on tracing the down-dip extension of wide zones of gold mineralization identified by earlier drilling campaigns and verifying the gold content using metallic screen fire assay.

“Previous drilling indicated gold mineralization in a wide zone extending over a strike length of 1,600 metres at shallow depths,” explained Compass CEO Larry Phillips.

“However, as we’ve also noted, re-assaying of previous RC and core samples demonstrated that simple fire assay testing had under-reported the gold content of the samples primarily due to the presence of the ‘nugget effect’ from coarse gold,” he added.

In connection with the offering, the company issued a total of 10,000,000 common shares at a price of $0.07 per share for aggregate gross proceeds of $700,000.

Insiders of the company purchased an aggregate of 2,782,285 shares under the offering for aggregate consideration of $194,760. Such participation is considered a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”).

Compass Gold Corp. is a mineral exploration company which holds gold exploration permits located in Mali that comprise the Sikasso Property.

Compass Gold Corporation opened trading at $0.075.


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