Rise Gold (RISE.C) released more assay results in August, and the results of hole 18-05 (which was deepened after discovering a high-grade result if 22.4 g/t gold over 5.2 meters in July) recorded an additional high grade interval of 4.5 meters containing 23.7 g/t gold. The gold mineralization occurred in what’s believed to be two new veins directly correlated to the Idaho Vein 3.
The company is very excited about its recent drill results as hole 18-05 was a blind hole, and discovering two high-grade gold zones is a very encouraging result, especially as some of the high grade results occurred in excess of a kilometer below the past-producing Idaho-Maryland mine.
The assay results for hole 6 are still pending, and drilling at hole 7 will be completed any day now, so we can expect more exploration results over the next few weeks. Once hole 7 will have been completed, Rise will re-direct the drill rig to test other high-priority targets down-dip the Idaho #1 vein as well as the Zebra Zone, which is located just 300 meters below the surface.
That being said, as of at the end of April, Rise Gold had C$2M in working capital after completing a C$3.5M private placement, and subsequently bought two diamond drill rigs for just over C$600,000 (payable in 18 monthly installments of approximately C$35,000 per month) and spent just over C$0.5M to acquire 82 acres of the mill site directly adjacent to the New Brunswick shaft. As Rise wants to be able to continue its exploration activities at Idaho-Maryland, it’s currently raising an additional C$1.5M in a C$0.08 placement with each unit consisting of one common share and a full warrant at C$0.12, exercisable for three years.