Volta raises $34.5 million ahead of initial Kiaka gold resource

Vancouver – The two drills turning at Volta Resources‘ (VTR-T) Kiaka project in Burkina Faso just completed a 17,500-metre infill campaign and have now moved to the south end of the zone, where step-out holes are hitting some of the project’s best intercepts to date.

And with $34.5 million on hand from a recent private placement, Volta is well funded to continue its Kiaka exploration program.

In the latest program, Volta drilled 113 holes totalling 17,517 metres primarily aimed at infill work to inform an initial resource estimate for the Kiaka Main zone. To date the company has received results from 94 holes covering the centre of the zone; the holes still pending are at the southwest and northeast ends of the zone.

The work has been producing long, well-mineralized intercepts from across the 750-metre long area, with drills near the south end pulling better widths and grades than the company expected. And with the infill work now finished, Volta is finalising a resource estimate that should be completed by the end of June.

In its two most recent sets of results, Volta reported results from holes on two lines – Sections 5150 and 5200 – that are spaced 50 metres apart. Hole 85 hit 142 metres grading 1.04 grams gold per tonne, starting at surface, followed by 10 metres of 0.68 gram gold and then 23 metres of 0.64 gram gold. Hole 71 intersected 167 metres grading 1.54 grams gold, starting 30 metres downhole. Hole 74 cut 134 metres of 2.16 grams gold from 22 metres depth. And hole 76 hit 42 metres of 2.25 grams gold from surface followed closely by 128.5 metres of 1.28 grams gold.

“Hole 74 is the best hole Volta has intersected at Kiaka and Section 5200 is one of the best sections we have ever drilled,” said Volta’s CEO, Kevin Bullock, in a statement. “We are particularly encouraged that this is the first section drilled south of the initial section that Volta drilled in December last year and it is extremely well mineralized, showing broad widths and higher grades than previously encountered.”

Volta is also in the process of assaying drill cores left behind by previous project owner Randgold Resources (GOLD-Q), some of which are also returning solid results. The company is assaying Randgold holes from each section as it drills the line. From the southwest part of the zone, hole 13 returned 60 metres of 0.73 gram gold from 97 metres followed by 8 metres of 1.73 grams gold, hole 4 cut 82 metres of 1.52 grams gold from surface, and hole 5 hit 15 metres of 1.41 grams gold from surface followed by 37 metres of 1.85 grams gold.

At the northeast end of the Kiaka Main zone, drills are not hitting the same widths and grades as in the south end. Volta believes the zone may be cut by an eastward-trending fault that displaced mineralization to the south. Nevertheless, drill cores are still showing narrow mineralized intervals, such as 34 metres of 0.43 gram gold and 13 metres of 0.94 gram gold.

The new interpretation of the geology at the north end of the zone follows induced polarization and ground magnetics surveys that changed Volta’s outlook on where to search for extensions to the mineralization at Kiaka. Sparse drilling by Randgold had indicated a northerly trend but the geophysical surveys show the zone continuing to the southwest. As such the company recently altered its drilling plan, adding two additional sections in the southwest.

Kiaka sits roughly 120 km southeast of Ouagadougou, at the intersection of the Markoye fault and the Tenkodogo Belt. The Markoye fault is a major Birimian greenstone belt home to several gold deposits, including Iamgold‘s (IMG-T) 5.1-million oz. Essakane, High River Gold Mines‘ (HRG-T) 1.7-million oz. Taparko, and Orezone Gold‘s (ORE-T) 2.1-million oz. Bombore.

Volta acquired the project from Randgold in late 2009, soon after the company was borne through the merger of Birim Goldfields and Goldcrest Resources.

In early June Volta closed a private placement, selling 22.3 million special warrants at $1.55 a piece to raise $34.5 million. The special warrants are exchangeable into common shares one a 1-to-1 basis following a four-month holding period.

Volta’s share price lost 4¢ on its latest set of results to close at $1.27. The company has a 52-week trading range of 13.5¢ to $1.79 and has 106 million shares outstanding.