(MENAFN - ProactiveInvestors - Australia) Cleveland Mining Company (ASX: CDG) has gone into an ASX trading halt as it prepares to make a share placement.
The halt is expected to last until Wednesday 13 February or when the announcement is released.
The company had last month secured A1.4 million in additional funds to support the operational requirements of its flagship Premier Gold Mine in Brazil as it progress towards being cash flow positive.
Recent gold recoveries have been 1020% above budget from the gravity circuit while the opening of ore faces has significantly expanded the company's knowledge of the orebody during the last few months of mining.
Premier Gold Mine is held as a 50:50 Joint Venture with Edifica Participaces.
It is located in an area that is very close to the town of Crix¡s with a population of 20,000 people, and includes gold mining infrastructure that supports operations at the Serra Grande Gold Mine.
Premier is a high potential brownfields gold project that is part of the Crix¡s Hub of 15 concessions that cover about 150 square kilometres, and contains an Inferred resource of 1.95 million tonnes at 1.42 grams per tonne gold for 89,000 ounces of gold. This resource was defined from historical data and a limited drilling programme that evaluated a very small portion of the total project.
Premier is expected to produce 20,000 ounces of gold per year, at a cash cost of around 450 per ounce with production doubling within a year.