Iceni Gold (ASX: ICL) Research Update

Highlights:

• Arrowhead is updating its coverage on Iceni Gold with a fair value bracket of AUD 0.14 to AUD 0.25 (share price on October 4, 2023: AUD 0.072) based on the Relative Valuation (EV/Measured & Indicated Ore Resources and Inferred Ore Resources multiple of Peers).
• On September 05, 2023, the company announced that it raised AUD 2.75 mn via a placement, including a commitment of AUD 430,000 from the board and management (subject to shareholder approval) to fund RC drilling at the Guyer and Everleigh Well Gold targets and Breakaway and Monument Gold and Lithium prospects and for working capital and costs of the placement. The company’s primary focus with the additional funding was to improve the value, accelerating the next round of drilling and field programs.
• The company will launch the first part of the Stage 3 – 10,000m RC drilling programs over the Guyer North, Breakaway Well, and Everleigh Well targets commencing in October 2023. The successful capital raise will fund the first pass of RC drilling to the end of the year and help extend the program into the new year with a further 10,000m of drilling following the initial assay results. The drill pad construction and final negotiations with drilling contractors are underway.
• In September 2023, the company announced the appointment of Mr. George Karageorge as Managing Director to the board, where he would also be contributing c. AUD 250,000 to Iceni’s capital raising program. Mr. Karageorge has over 35 years of experience as a company director and geologist in senior roles across the globe for companies including Western Mining, Anglo Gold Ashanti, ASARCO, and Barrick Mines. Previously, he was a founding geologist and the first employee at Pilbara Minerals, helping to discover the significant world-class Pilgangoora lithium deposit in 2014. Mr. Karageorge’s appointment would significantly enhance the company’s Gold and Battery Metals exploration expertise.
• The company has recently restructured its board. The current Executive Chairman, Brian Rodan, will transition to Non-Executive Chairman over 3 months, and Technical Director David Nixon will move to the role of General Manager of Exploration.
• Within the Monument target area, two lithium anomalies have been discovered. These display a strong association with Lithium (Li), Cesium (Cs), Beryllium (Be), and Rubidium (Rb) anomalism, where anomalous multi-element UFF+ and rock chip assays represent both the targets. These two lithium anomalies fall within a Goldilocks Zone environment, a corridor containing suitable rock types, geological structure, and geochemistry, in which there are lithium-bearing pegmatites.