(MENAFN - ProactiveInvestors - Australia) Red Metal's (ASX: RDM) shares are up 24% in afternoon trade to 0.26, on massive volume of over 1.6 million shares.
There have been no announcements driving the investor interest, with the last news to the ASX being the completion of a share placement at 0.18 to raise 3.5 million, placed to Australian institutions and professional investors.
The new funds will be predominately allocated to the upcoming drilling program at the silver-lead project, with results just a couple of weeks ago showing highly visible disseminated lead sulphide mineralisation.
Recently completed drilling intersected 10.6 metres of mineralisation in the lower banded iron formation averaging 5.48% lead and 208 grams per tonne (g/t) silver.
This occurs within a broader 13.1 metre zone averaging 4.79 % lead and 174.8g/t silver and appears to change from being lead-rich towards the top to silver-rich toward the base.
Assays from the Upper BIF defined three narrow zones of mineralisation including a zone averaging 10.12% lead, 3.68% zinc, 154.5 g/t of silver and 0.5 g/t gold
These mineralised zones occur within separate 50 metre thick intervals of iron sulphide-carbonate facies BIF which marks a significant change in the composition of the iron formation hosts.
The project is based in the Mount Isa Inlier in Queensland.