Jilbey drills Taranga (October 20, 2003)

Jilbey Gold Exploration (JLB-V) has begun drilling at its Taranga gold permit in Burkina Faso.

The property, which covers 240 sq. km of the Bouroum-Yalogo greenstone belt, was acquired earlier this year from High River Gold Mines (HRG-T) to cover anomalous soils extending from that company’s adjoining Taparko permit. In exchange, High River acquired a 9.95% equity interest in Jilbey and the right to re-purchase half-stakes in Taranga and the related Nongo Fayere permits for 1.5 times Jilbey’s expenditures.

The drilling will entail 12,000 metres using a rotary air-blast rig. Most of the holes will be collared over the Monlouri shear zone, where trenching returned up to 104.9 grams per tonne over 0.7 metre; soil sampling, up to 5.9 grams; and grab sampling, up to 92.55 grams.

Meanwhile, High River and Axmin (AXM-V), which is earning a majority interest in the Bouroum permit, are putting the finishing touches on a feasibility study. Several near-surface zones on each property would be mined, though processing would occur at Taparko only.

At last report, the properties held a combined, in-pit diluted resource of 4.45 million tonnes averaging 3.3 grams. The estimate is based on a gold price of US$350 per oz.

Capital costs for the envisioned gravity and carbon-in-leach operation are estimated at US$30 million.

High River holds an 80% stake in Taparko, with the government owning the remainder.

Axmin can earn a 65% interest in Bouroum by delivering a bankable feasibility study to Channel Resources (CHU-T). Channel has agreed to sell its future minority stake at US$10-15 per oz. of reserves; however, the government retains a back-in right for 10% if commercial production is achieved.