TechGen shares up 45% on debut as El Donna drilling starts
TechGen Metals Limited (ASX:TG1) couldn’t have wished for a better start when it commenced trading on the ASX on Tuesday with its shares closing at 29 cents, implying a premium of 45% to the IPO price of 20 cents per share.
The company finished with gross proceeds of approximately $6 million following the IPO, providing it with ample funding to conduct extensive exploration across its three main areas of operation, the Paterson Orogen, the Ashburton Basin and the Yilgarn Craton.
In the updated statement of commitments released when the company commenced trading, about $3.1 million has been allocated to exploration expenditure, and it is worth noting that the company hasn’t wasted any time in putting this to good use, having commenced its maiden reverse circulation (RC) drilling campaign at the company’s El Donna Gold Project, 50 kilometres north-east of Kalgoorlie.
The three areas being targeted by TechGen all have undergone very little modern exploration, but lie in broader regions where prominent discoveries have been made.
The following graphic provides a good snapshot of where its projects are located (El Donna to the south) and the likely mineralisation they will be targeting.
El Donna has historically delivered high-grade gold
TechGen has commenced its maiden reverse circulation (RC) drilling campaign at the company’s El Donna Gold Project, 50 kilometres north-east of Kalgoorlie.
The project is in an interesting location in that it is situated between the Mayday North Gold Mine (84,000 ounces at 1.5 g/t gold Indicated and Inferred) owned by Bardoc Gold Limited (ASX: BDC) and the Penny’s Find Gold Mine (56,000 ounces at 7.04g/t gold Indicated & Inferred) owned by Orminex Limited (ASX: ONX) and Horizon Minerals Limited (ASX: HRZ).
In terms of the area’s geological significance, the project is situated within the Gindalbie Domain of the Kurnalpi Terrane, part of the Eastern Goldfields Superterrane of the Archean Yilgarn Craton.
The El Donna project is considered prospective for gold mineralisation similar to that observed at both the Mayday North Gold Mine, 2 kilometres to the north, and the Penny's Find Gold Mine, 3.5 kilometres to the south with the latter featuring particularly high grade mineralisation.
TechGen recently collected several rock chip samples from the Star Prospect as shown below within the El Donna project and these have been sent for analysis.
Results to follow.
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