Blackrock Gold Corp (CVE:BRC) is poised to bring in up to $500,000 gross from a private placement for additional exploration at its Silver Cloud property in Nevada, USA.
In a statement, the firm said $100,000 would be allocated for that purpose, while a further $100,000 would be used to pursue opportunities to acquire additional properties to expand its property portfolio, and $300,000 would go toward working capital.
Blackrock will issue up to 10 million units at $0.05 each for gross proceeds of up to $500,000.
Each unit comprises one share and one-half of a share purchase warrant. Each whole warrant will entitle the holder to acquire one additional share for $0.075 for two years from the date the units are issued.
The Silver Cloud project lies on one of the world’s richest gold belts, near the confluence of the Carlin Trend and the Northern Nevada Rift in north-central Nevada.
Silver Cloud has been looked at before, but it’s been a long while since then: 16 to 17 years since anything was drilled. Most of the limited drilling was completed by Teck Resources or Placer Dome.
Limited drill program
A limited drill program at Silver Cloud was completed by Teck (10 holes) between 1999 and 2001 and one hole hit 1.5 m (meters) at 145 g/t (grams per ton) gold and another encountered 22.8m at 5.67 g/ton gold.
In 2002 Placer-Dome had one drill hole which encountered 12 m at 5.53 g/t gold in the Northwest Canyon approximately 2 km west of the Silver Cloud Mine, confirming the presence of high-grade gold mineralization at depth.
This fall, Blackrock said it had plans to expand its soil geochemical survey at the site, the first phase will zero in on a northern area of the project measuring about 2 kilometers wide by four kilometers long.