Semafo reduces resource

A re-evaluation of the resource at the Segala gold deposit in western Mali, by owner Semafo (SMF-T), has produced an estimate that is smaller but higher-grade than previous figures.

The new estimate shows an indicated resource of 4.2 million tonnes at an average grade of 5.4 grams gold per tonne. Of this, 3.2 million tonnes are in sulphide mineralization with a grade of 6.2 grams per tonne, with the rest in two zones of oxide mineralization, Segala Main and Segala Northwest.

The Segala Main zone, which overlies the sulphide zone, contains 429,000 tonnes grading 2.4 grams per tonne. The Northwest zone has a further 486,000 tonnes running 2.6 grams.

The former owner, Vancouver-based Oliver Gold (OGO-V) had calculated a resource in all categories of 15.4 million tonnes grading 2.75 grams gold per tonne. The new resource, based on the Oliver data, uses a cutoff gold grade of 3 grams per tonne in sulphide material and also caps assays in the oxide material at 12 grams.

Semafo also ran a 17-hole program of reverse-circulation drilling on the Northwest zone, which revealed that gold mineralization continues for 400 metres along strike with grades peaking at 30 grams per tonne.

Soil geochemistry and geophysical surveys indicate additional exploration targets, and Semafo plans to follow up on this work after the rainy season.

The Malian government holds a 15% carried interest and a 5% working interest in Segala, and a private Malian company has 5%.