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Shareholders confident as Redstone Resources raises $1.45m to drill prospects

October 10, 2018

October 10, 2018

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Shareholders confident as Redstone Resources raises $1.45m to drill prospects

Operating just 40km away from the world’s largest Nickel-Sulphide in the last 25 years, Redstone Resources (ASX:RDS) have jumped at the opportunity to drill their West Musgrave Project, where they have  already intersected sulphides often associated with major mineralisation discoveries.

Operating just 40km away from the world’s largest Nickel-Sulphide in the last 25 years, Redstone Resources (ASX:RDS) have jumped at the opportunity to drill their West Musgrave Project, where they have  already intersected sulphides often associated with major mineralisation discoveries.

To conduct the drilling, Redstone has raised $1.45 million from an underwritten Shareholder Entitlement Offer over the past month, with shareholders giving a vote confidence for the companies plans and the project’s potential.

Last year, Redstone conducted an airborne electromagnetic survey of their West Musgrave land holding, with results lighting up 13 individual EM anomalies.

The company reported drilling of one anomaly to depths of 300m where they intersected sulphides, often associated with major mineralisation discoveries, with large copper and nickel ore bodies already identified within West Musgrave.

Whilst those 13 EM anomalies are highly prospective and demonstrates Redstone’s blue sky potential, the value of the company is underpinned by their proven 38,000 tonne copper resource at their Tollu Project, with copper currently trading around $6,000 per tonne.

In recent years, the West Musgrave region in Western Australia has proven to be prosperous to explorers, with drilling having unearthed sizeable amounts of nickel and copper sulphides in particular.

With the $1.45m raised over the past month, Redstone intend to commence drilling in early 2019 meaning  now could be an opportune time for investors to join Redstone’s shareholder base, with potentially exciting  news flow expected in the near future.

Redstone Resources trades on the ASX under the code: ‘RDS’

*Oz Financial Australia Pty Ltd trading as Reach Markets are the advisors assisting RDS with the management of an Entitlement Offer and may receive fees depending on whether the offer is taken up by investors.


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