LONDON (ShareCast) - (Sharecast News) - US-focused explorer Great Western Minerals wants to raise £1m after it intercepted "intense" hydrothermal alteration and mineralisation while drilling at its most recent well on the M2-Sharktooth project.
The unexpectedly thick alteration and mineralisation, in the form of multiply-silicified, quartz-magnetite, hydrothermal breccia, appears to have taken the place of copper and gold-bearing diorite in the area.

The AIM-quoted outfit intends to continue drilling through the hydrothermal breccia before expecting to encounter the mineralised diorite intrusive.

However, the last ten metres of drill hole M2-041 has been characterised by an "even more intense", multiple quartz and quartz-magnetite breccia, banding, and flooding than intervals above.

Great Western also announced on Tuesday that in order to fund the Nevada-based project, it would need to raise roughly £1m via a placing of 77m ordinary shares at a discounted 1.3p each.

Chief executive, David Fraser said, "We are very excited by the discovery of the highly anomalous hydrothermal breccia at M2. Our geological team are very encouraged by observations made during core logging. We now await the first assay results from this breccia zone and will update shareholders as soon as practicable."

As of 0915 BST, Great Western shares had tumbled 22.9% to 1.33p.

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