LCL raises $3M - looking to drill in Q2-2024
Our long term Investment LCL Resources (ASX: LCL) just topped up its cash balance ahead of its first nickel focused drill program in 2024.
LCL raised $3M at 1.9c per share adding to its $2.9M cash balance at 30 September 2023.
The raise also came with one for two free options exercisable at 2.5c per share with a two year expiry.
That means LCL will be issuing a total of:
- 156,842,110 shares being issued on the 7th of December 2023.
- 78,421,055 options being issued in January 2024 after shareholder approvals.
LCL to drill for nickel in the PNG -
LCL also confirmed in today’s announcement that the funds raised would be used to drill its nickel projects in the PNG.
LCL holds a ground position of ~3,400km^2 covering the biggest nickel stream sediment anomaly in the PNG.
Across the project LCL has three main nickel targets:
- Veri Veri - This is where LCL recently confirmed the source for the high grade nickel boulders it had across its project area. The nickel boulders graded as high as 45.8% nickel.
See our deep dive note on that news here: LCL grabs all land surrounding 45.8% “nickel boulder” - Iyewe - Previous trench sampling returned 2.05m with 12.33% nickel grades and rock chip samples graded as high as ~49% nickel. The prospect had ~10 drillholes completed by a previous explorer returning best hits of 5m with nickel grades of 1.48%.
- Doriri - Previous drilling in the 1960’s returned 3.6m hits with nickel grades of 1.47%. Then again in 2012 and 2022 more drilling was done hitting nickel grades of up to 1.13%.
LCL expects to be drilling across its highest priority targets in Q2-2024.
What’s next at LCL’s nickel targets?
Before the drill program LCL’s plan is to:
- Mapping and trenching at the Iyewe and Veri Veri prospects
- Field program across the Wedei and Safia prospects.
- Re-evaluate and reinterpret existing geophysical data.
- Potentially running new geophysical surveys over high priority targets.
Ultimately, the results from those programs will determine where LCL drills - we will be looking out for the results from those programs.
