Meeka logs $8.8m in commitments ahead of drilling at lucrative St. Anne’s gold prospect

With commitments for $8.8m in place, Meeka Metals (ASX:MEK) is fully funded to undertake the next stage of drilling at the St. Anne’s prospect, part of the company’s Murchison WA Gold Project. 

The St. Anne’s prospect is not currently included in the company’s JORC resource estimates for the project, and further discoveries at St. Anne’s will potentially allow Meeka to significantly upgrade it. 

To this end, Meeka will issue 147m new ordinary shares at 6c with some 9.2m of those subscribed to by internal Directors at roughly $500,000. 

Shareholders must approve the Director placement at the company’s November 2022 AGM. 

Source: Meeka Metals

Recent developments

Last week, the company reported hitting thick intersections of gold at St. Anne’s, which pushed the company’s share price up 40%. 

The size of intersections and the grades of gold within were key factors driving market enthusiasm behind that upward climb.

Information provider Undervalued Equity notes high grade gold is that over 5 grams of gold per tonne (g/t); many Australian gold operations boasting 4g/t are also considered high grade. 

Compare that to the following, and you can see why the market is loving Meeka: 

• 32m @ 16.07 g/t from 48m depth including 16m @ 28.59g/t

• 20m @ 20.74g/t from 48m depth including 16m @ 24.86g/t 

 A 32m thick intersection at 16g/t is extremely unusual, and provides evidence of gold mineralisation approaching ‘bonanza’ grades. 

The results from last week also dwarfed earlier assay data from St. Anne’s for which the best result included 24m @ 4.81g/t. 

Also worth noting: Meeka is awaiting the return of assay data for a further 3,615m worth of drilling at St. Anne’s in the coming weeks and months.

Meeka's three month charts; news of today's funding commitment has seen Meeka jump up by over 4%

Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Meeka was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.