Vendetta Mining (VTT.V) has confirmed it’s planning to drill approximately 12,000 meters at its Pegmont Lead-Zinc project, starting in May. This year’s drill program will focus on three different parts.
First of all, the company wants to test the high-grade and near surface Z fold underground target, which should allow it to increase the indicated and inferred resources. A bunch of additional holes will also be drilled at the Zone 5 area to increase the overall resources, whilst a final part of the drill program will be oriented towards filling in the ‘gaps’ in the open pit areas at Zone 1 and 2. Vendetta is also planning a regional exploration program to follow up on the copper discovery hole but we will continue to focus on the Pegmont project.
To fund the drill program, Vendetta Mining is raising C$3M in an non-brokered placement priced at C$0.20 per unit with each unit consisting of one common share and ½ warrant allowing the warrant holder to purchase an additional share at C$0.30 for two years. It is our understanding that Vendetta had been negotiating with both potential private equity partners and institutional investors, but didn’t want to wait any longer to kick off the 2017 drill campaign and the current C$3M placement (with mainly institutional investors) will fund the exploration program.
An updated resource estimate will be published within the next 4 weeks, and we would like to see a total tonnage of 7.5-8 million tonnes, and perhaps an updated exploration target.