Drilling Confirms 1.1km Gold Strike at Monument Project; $600k Raised in Rights Issue

Monument Gold Project Advances with New Discovery

Verity Resources Limited (ASX: VRL) has reported significant progress in its December 2024 quarterly activities, highlighted by successful infill drilling at the Fred's Well prospect within the Monument Gold Project, located in the prolific Laverton Gold District of Western Australia. The latest drilling results have confirmed a 1.1-kilometre mineralised gold strike trend, extending the known mineralisation and potentially adding to the existing Korong Mineral Resource Estimate of 3.2 million tonnes at 1.4 grams per tonne gold.

Notably, several high-grade intersections were recorded, including 24 metres at 3.24 g/t Au with a 12-metre interval grading 6.35 g/t Au. These results, received post-quarter, suggest the presence of a new near-surface mineralised zone that could materially enhance the current resource base. The Fred's Well prospect lies just 2 kilometres northwest of the Korong deposit, underscoring its strategic importance.

Strategic Exploration and Resource Optimisation

Verity is preparing to commence pit optimisation studies in 2025 on both the Korong and Waihi deposits, the latter hosting 0.2 million tonnes at 2.1 g/t Au. These studies are timely given the significant increase in gold prices since the last resource estimation in 2021. Both deposits remain open in all directions, offering considerable upside potential.

Beyond Fred's Well, the Monument Gold Project boasts over 60 additional untested targets across banded iron formations, basalt, and intrusion-hosted gold systems. With only about 10% of the project's 20-kilometre strike length drilled in detail, Verity's exploration upside remains substantial.

Rare Earths and Base Metals Portfolio Expands

In Brazil, Verity has initiated a surface reconnaissance program at the Pimenta REE-Nb Project in Minas Gerais, targeting allanite-hosted and clay-hosted rare earth elements (REE) and niobium mineralisation. This program follows identification of a 26-kilometre radiometric anomaly, with results expected shortly. The company also holds interests in the Caldera REE Project, where previous drilling has returned ultra-high-grade rare earth intercepts, although no new activity was reported this quarter.

Meanwhile, in Botswana, Verity continues discussions for potential corporate transactions involving its copper-silver-nickel-PGE portfolio, which includes the Maibele North inferred resource of 2.4 million tonnes at 1% nickel equivalent, and high-grade copper-silver discoveries at the Dibete and Airstrip projects.

Corporate Developments and Financial Position

The quarter saw Verity Resources complete a non-renounceable rights issue and shortfall placement, raising approximately $600,000 before costs. Directors Patrick Volpe and Ian Kiers fully subscribed to their entitlements, reflecting confidence in the company's prospects. Additionally, the company underwent a 20-for-1 share consolidation and changed its name from SI6 Metals Limited to Verity Resources Limited, signaling a refreshed corporate identity aligned with its diversified resource portfolio.

Financially, Verity ended the quarter with $351,000 in cash and equivalents, supported by a $200,000 unsecured loan facility. Exploration expenditure totaled $166,000 across Western Australia, Brazil, and Botswana, with the company carefully managing its budget to sustain ongoing activities.

Looking Ahead

Verity Resources is poised to leverage its recent drilling success and capital raising to advance resource definition and exploration programs across its key projects. The upcoming pit optimisation studies and further drilling at Fred's Well could unlock significant value, while results from the Pimenta REE reconnaissance program will be closely watched by investors seeking exposure to critical minerals.