Gippsland banks A$1.4m to advance Eritrean gold and VMS exploration 

(MENAFN - ProactiveInvestors - Australia) Gippsland (ASX: GIP, FRA: GIX) has raised 1.4 million from 3 for 7 non-renounceable rights issue to fund the completion of the current exploration program in Eritrea.

Funds will go towards completion of the current 5,000 metre reconnaissance reverse circulation drilling program which is testing high priority targets within the Adobha Project, which is prospective for gold and volcanogenic massive sulphide targets.

After successfully completing a program of airborne geophysics followed-up with gravity surveys, geochemical surveys and geological mapping, Gippsland identified a number of favourable targets for drill testing.

The gravity survey was conducted over 12 electromagnetic anomalies, including six high and medium to high ranked electromagnetic anomalies previously identified from an airborne survey.


Eritrea prospectivity

Gippsland's Eritrean assets are held by the wholly owned Adobha Resources, with the subsidiary's tenement holding in the country an extensive 2,200 square kilometres.

The Adobha region is located in the Precambrian Nubian-Arabian Shield that hosts the 9.1 million ounce Sukari gold deposit, and Gippsland's 142.4 million tonne Abu Dabbab-Nuweibi tantalum-tin deposits.

The licences cover a highly mineral endowed region that is regarded as very prospective for volcanogenic massive sulphide mineralisation and structurally controlled gold mineralisation.

Local examples of these types of deposits are the Bisha base metal deposit hosting 1.6 million ounces of gold and 0.45 million tonnes of copper, located some 174 kilometres to the south, and the Probable Ore Reserve of 0.76 million ounces of gold at the Zara gold project (Koka deposit).