Spectacular drilling results for Canadian pgms project

Gauged interest indicates Magma Metals Ltd (ASX: MMB) may be oversubscribed in its planned raising of $A16 million ($US M) through issuing 50 M new shares at A32 cents - a placement which Anglo American plc participated in to maintain its 12% stake in the company.

The raising, with Perth stockbroker Hartleys Ltd as lead manager, was being taken up by domestic and international investors to provide fresh capital for the Thunder Bay North platinum-palladium-copper-nickel prospect in Ontario.

Interest in Magma was sharpened by the release this week of a spectacular round of drilling results form the Current Lake-Beaver Lake area at Thunder Bay North, where drilling has been on a 3 kilometre strike.

Latest results included hole TBND134 which had 37 metres grading 4.55 grams/tonne combined platinum-palladium, 0.49% copper and 0.26% nickel, including 22m @ 6.52 g/t Pt-Pd, 0.69% Cu and 0.33% Ni; and hole TBND171 with 40.45m @ 7.12 g/t Pt-Pd, 0.84% Cu and 0.41% Ni, including 9m @ 10.68 g/t Pt-Pd, 1.21% Cu and 0.5% Ni.

The initial resource was expected to be completed in the September quarter.

Magma has now completed 26,500m of drilling at Thunder Bay North.

Managing director Keith Watkins said the new capital would be sued to complete definition drilling and resource estimates as well as step-out drilling to extend the resource to the south east.

Read more here