Mining Group (ASX: MNE) is hard at work unlocking the value of its Comval Copper-Gold Project in the Philippines and to support this is finalising the details of a proposed capital raising.
The company is in the late stages of finalising terms of a pro rata renounceable rights issue which will be made available to all existing shareholders.
Zeff Reeves, new managing director, commented: “We’ve executed an aggressive exploration strategy and obtained some exciting results.
“The anticipated capital raising will provide the company with funds to ensure it is adequately capitalised to execute its planned work programmes, designed to unlock value in both the skarn and porphyry targets at Comval.
“Our current strategy is to identify the best target outside of the known Tagpura and Maangob deposits, then focus on that area to establish a JORC compliant resource.”
Mining Group has recently transitioned its executive management and this, combined with the proposed capital raising, will position the company to take full advantage of its rapidly progressing Comval Project.
The recent appointment of Cobb Johnstone as non-executive director and Zeff Reeves to the role of managing director signals a new phase for Mining Group.
Comval emerging as a compelling project
Mining Group has 80 percent ownership of Comval, which includes two granted exploration permits totalling 4,310 hectares, and four known deposits.
A major plus for Comval is the strategic location in an active mining district, with four mines and a port within 70 kilometres.
The mines to the north include the Dilwalwal project (10.2Mt at 9.6g/t gold), and the Medusa Mining (ASX: MML) Co-O Mine (6.3Mt at 9.6g/t gold), while to the south is the Amacan project (110Mt at 0.3 percent copper, 04.g/t gold) and the Masara/Maco project (3Mt at 5.9g/t gold).
The company only acquired the Comval Project six months ago, but the drilling results highlight the growing potential for Tagpura/Bayag Bayag to host a significant copper orebody.
The company is targeting two types of mineralisation, with the high grade skarns typically lower tonnage (less than 50 million) tonnes at around 1 percent copper equivalent.
There are historical mine and proven skarn targets in the south, with three drilled and another two identified from mapping, (Tagpura, Mangob, Bayag Bayag, Tagpura East and Kapanawan skarns).
The second is a porphyry, being a large tonnage, lower grade, 0.5 percent copper plus gold system.
Mining Group in recent months has used the expertise of geophysics company Resource Potentials to conduct high resolution ground magnetic work between Tagpura and Bayag Bayag.
This data has identified a number of near surface anomalies which remain untested and provide encouragement that further skarn mineralisation exists within a 2 kilometres radius of Tagpura.
Mining Group is currently drilling the first of these targets and expects to see results from these drill holes within eight to 10 weeks.