Semafo cuts new gold at Mankan-East

Trenching on the Mankan-East zone on the Jean-Gobele gold property in northern Guinea, has returned some encouraging grades for owner Semafo (SMF-T).

Trench 109 returned 22 metres grading 6.3 grams gold per tonne (high gold values were cut to 30 grams gold). The newly discovered mineralized quartz-carbonate stockwork comprises veins ranging from 50 to more than 100 metres in length. The zone remains open.

Some 100 metres to the south, trench 102 yielded 4 metres running 3.2 grams gold, and 8 metres of 2.9 grams. Another 800 metres to the south, trench 113 cut 3 metres containing 6.7 grams gold. Both trenches cut mineralized quartz and tourmaline veins that dip steeply to the northeast.

The trenching was designed to test a 500-metre-by-3.5-km soil geochemistry anomaly situated about 15 km north of the company’s Kiniero gold mine. The anomaly had previously returned up to 5 grams gold.

Semafo is following up with a program of trenching on 100-metre spacings.

In 2004, Kiniero produced 41,049 oz. gold from 411,948 tonnes of ore grading 3.36 grams gold per tonne. That’s down from the 46,728 oz. produced in 2003. The decrease reflects mechanical problems that forced the mill to shut down for more than a month.

A second ball mill has since been added, increasing total capacity by more than 25%. The mine is slated to pour 60,000 oz. in 2005.

News of the discovery at Mankan-East sent shares in Semafo as much as 7, or 5.5%, higher to $1.35 in early trading in Toronto on May 10.

Semafo’s first-quarter financial results are due out on May 13.