Oliver leaves Mali for Zimbabwe

Junior gold explorer Oliver Gold (OGO-V) has sold its mineral rights in Mali, including its half interest in the Segala deposit, and is taking its business to Zimbabwe.

Oliver sold its rights to properties in the West African nation to Consolidated Mining, a South African company, for $6.6 million in shares from Trillion Resources (TLQ-T) and Consolidated African Mines. Those two companies hold a combined interest of 80% in Consolidated Mining. Included in the sale was Oliver Gold’s option to acquire a half interest in the Segala property in return for an exploration expenditure of US$250,000 and a bankable feasibility study, to be completed within five years.

At last report, reserves at the Segala deposit stood at 15.4 million tonnes grading 2.75 grams gold per tonne, equivalent to 1.4 million contained ounces. The oxide reserve weighs in at 1.2 million tonnes grading 2.27 grams; the remainder of the zone consists of sulphides.

Oliver has spent $14 million in Mali over the past three and a half years, and its drills have probed as deep as 400 metres. The company, however, is “looking for something a little better than three grams [gold] at that depth,” says President Lawrence Nagy.

With $4 million in its treasury and $6.6 million worth of shares in Trillion and Consolidated African, Oliver Gold will focus on its wholly owned properties in Zimbabwe.

The company runs two underground gold mines — the C and Camp — and holds 38,823 ha surrounding the mine properties. Oliver is also evaluating the Ipanema, Clifton-Hungwe and Agincourt prospects, all of which fall within its concessions.

Current drilling on strike and on downdip extensions at the C mine is expected to increase reserves there. Mill upgrades have increased daily output to 250 from 125 tonnes, with an average millhead grade of about 5 grams per tonne. The company is aiming to boost daily production to 400 tonnes.

Situated in southern Zimbabwe, 4 km northwest of Mberengwa, the C mine produced 3,152 oz. gold over 11 months in 1995-1996.

During that time, the average millhead grade was 2.54 grams. Historically, the mine has produced 87,000 oz. gold. Gold and sulphides occur along fine, chloritic fracture planes in a quartz vein that strikes over 830 metres and ranges in width from 2 to 14 metres.

The company plans to expand reserves, as well as modify the current operation.

The Camp mine, which was temporarily shut down for maintenance and exploration, is about 5 km southeast of the C mine. It produces about 7,000 oz. gold per year from two well-defined quartz veins with a strike length of about 230 metres. The property was staked in 1895 and mined intermittently for 26 years until 1948. Historic production amounted to 21,535 oz. gold, with an average grade of 8.71 grams gold. The company is exploring on-strike extensions of the mineralization.

Oliver is spending $1 million on follow-up work at the Ipanema gold-copper prospect, 35 km northwest of Mberengwa. Thirty-nine holes have been sunk this year. The prospect is defined by a strong gold-in-soil anomaly measuring 300 by 400 metres. Results from the second phase of drilling include 1.2 grams gold over 67.7 metres in hole 25, and 1.05 grams over 110.6 metres in hole 29.

The Clifton-Hungwe gold prospect adjoins the Camp mine claims to the south, and hosts numerous small gold-bearing quartz veins and stringers. Many of the veins have been mined to shallow depths by artisanal miners. A large gold geochemical anomaly will be drill-tested in the next few months.

Sampling at the old Clifton mine, which closed in 1951 after producing 27,521 oz. gold, uncovered a 50-to-75-metre-long oxide stockwork zone. Drilling will test the stockwork and the downdip extension of the mine.

Geochemical sampling and scout drilling are testing the 9,210-ha Agincourt prospect, southwest of the Camp mine.