Verity Resources reports significant progress at its Monument Gold Project in Western Australia, confirming a 1.1km gold mineralised strike at Fred’s Well and initiating steps to upgrade its resource base. The company also raised $308k via placement and launched a $1.1 million renounceable rights issue to fund further exploration.
- Preliminary studies underway to upgrade Korong-Waihi Mineral Resource Estimate
- Infill drilling at Fred’s Well confirms 1.1km gold mineralised strike trend
- Raised $308k via placement; announced $1.1 million renounceable rights issue
- Corporate changes include retirement of Dr Paul Woolrich and appointment of Paul Dickson
- Ongoing exploration and strategic discussions for Botswana and Brazil assets
Exploration Momentum at Monument Gold Project
Verity Resources Limited (ASX: VRL) has delivered a robust quarterly update highlighting significant advancement at its 100%-owned Monument Gold Project in Western Australia’s prolific Laverton Gold District. The company is progressing a preliminary pit optimisation study on the Korong and Waihi deposits, aiming to upgrade the existing JORC Inferred Mineral Resource Estimate (MRE) of 3.2 million tonnes at 1.4 g/t gold for 154,000 ounces to a higher confidence Indicated category. This upgrade is a critical step towards enabling more detailed technical and economic assessments.
Independent consultants Cube Consulting Pty Ltd are spearheading the resource modelling, while Environmental Resources Management is conducting a comprehensive validation of historical drilling data. Verity plans a targeted 2025 drill campaign combining infill and step-out drilling to both increase geological confidence and test resource extensions along strike and at depth.
Fred’s Well Prospect Confirms New Gold Zone
Complementing the Monument MRE, Verity’s recent infill aircore and reverse circulation drilling at the Fred’s Well prospect has confirmed a substantial 1.1-kilometre gold mineralised strike zone. Located approximately 2 kilometres northwest of the Korong deposit, Fred’s Well returned encouraging intercepts including 24 metres at 3.24 g/t gold, with a standout 12 metres at 6.35 g/t gold. These results validate Fred’s Well as a significant new target that could materially add to the company’s resource base pending further drilling and analysis.
Detailed structural and geochemical studies are planned to refine exploration vectors and identify additional targets within the broader Monument Project, which still holds over 60 untested drill targets across various host rock types.
Capital Raising and Corporate Developments
To support ongoing exploration and working capital needs, Verity successfully raised approximately $308,000 through a placement of 25.6 million shares at $0.012 each, accompanied by free attaching options exercisable at $0.022. Following this, the company announced a renounceable rights issue on a 1-for-2 basis to raise up to $1.1 million, partially underwritten by a director-associated entity. These funds are earmarked primarily for advancing the Monument Gold Project.
Corporate governance changes included the retirement of Non-Executive Director Dr Paul Woolrich and the appointment of Mr Paul Dickson as an Independent Non-Executive Director. Additionally, Mr Patrick Volpe assumed dual roles as Non-Executive Director and Company Secretary, reflecting a streamlined leadership structure.
Exploration and Strategic Moves Beyond Australia
Verity’s portfolio extends beyond Australia, with ongoing exploration and strategic discussions in Brazil and Botswana. In Brazil, the company’s Pimenta Rare Earth Elements (REE) Project has yielded surface samples with high-grade REE and gallium anomalies, comparable to nearby advanced projects. The joint venture with Foxfire Metals Pty Ltd has had its minimum expenditure commitment extended to February 2026, allowing continued exploration momentum.
In Botswana, Verity holds a 66% interest in key copper-silver-nickel-PGE projects, including the Maibele North resource with a JORC Inferred Resource of 2.4 million tonnes at 0.72% nickel. Discussions with potential partners or corporate events are ongoing but remain non-binding at this stage.
Financial Position and Outlook
At quarter end, Verity reported a cash balance of $488,000, supported by the recent capital raise and an unsecured loan facility of $200,000. Exploration expenditure for the quarter was modest at approximately $107,000, reflecting a disciplined approach to funding while advancing key projects. The company’s strategy to upgrade resource confidence and expand its footprint in critical metals aligns well with market demand for gold and supply-critical elements.
Looking ahead, the success of the planned drill programs and the outcome of the rights issue will be pivotal in shaping Verity’s near-term growth trajectory.
Bottom Line?
Verity Resources is positioning itself for a resource upgrade and expansion at Monument while securing capital to fuel exploration — the next drill results and rights issue uptake will be key market catalysts.
Questions in the middle?
- Will the planned infill and step-out drilling at Korong-Waihi successfully upgrade the resource to Indicated status?
- How will the rights issue perform amid current market conditions and what impact will it have on Verity’s share structure?
- What are the prospects and timelines for potential corporate transactions involving the Botswana copper-silver-nickel assets?