Kerr said it is well positioned to complete the drilling program after recently raising $5 million from a bought deal financing comprised of 35.7 million units priced at 14 cents each.
On Tuesday, the shares were unchanged at 13.5 cents on volume of 607,067 and trade in a 52-week range of 21 cents and $0.09.
The company said it is currently drilling the fourth of up to 20 drill holes for the surface drilling program with drill assays currently pending. The four holes are focused on resource expansion with two holes drilled in the recently discovered Footwall Zone with the remaining two in the previously defined Copperstone Zone. The Footwall Zone is located only 150 metres from the Copperstone Zone, which Kerr has described as the underground extension of the same orebody that was historically mined as an open pit.
Kerr recently sold its remaining properties in Northern Ontario to Orefinders Resources Inc. [ORX-TSXV; ORFD-OTC] in a move that will allow Kerr to focus on its Copperstone Project.
The Copperstone Mine produced nearly 500,000 ounces of gold between 1987 and 1993 from an open pit operation. Significant remaining infrastructure from that period includes offices, maintenance shops laboratory building, permitted tailings facility, processing facility and mill.
The mine is located in La Paz County, Western Arizona, within the Walker Lane mineral belt. The property is accessible from Phoenix on Interstate 10 to Quartzsite and from Quartzsite on Route 95.
Copperstone gold is not encapsulated in sulphides or silica, and the ores do not contain active carbon, which means the ores are not refractory.
Kerr recently announced results of an independent pre-feasibility study and resource update for the project. The resource update is in compliance with NI 43-101 standards.
Highlights from the PFS include average annual sales of 38,347 ounces of gold, initial capital of $22.7 million, and all-in sustaining cost of US$875/gold ounce. The project hosts 175,093 ounces of contained gold in the proven and probable category. Measured and indicated resources stand at 276,000 ounces.
In Tuesday’s update, the company said the two Copperstone Zone holes are targeting gaps in prior drilling on the down edge of the Copperstone orebody where nearby gold grades are up to 32 g/t gold.
The 2020 drilling program, a continuation of the 2019 resource expansion program (5,000 metres), will remain focused on resource expansion by way of adding new inferred gold resources and upgrading resources into higher measured and indicated categories at both the Copperstone and Footwall Zone. The company plans to complete 8,000-10,000 metres of underground core drilling and surface reverse circulation drilling.