Riverstone drilling enriches its Karma

Vancouver – The latest drill results from Riverstone Resources‘ (RVS-V) Karma project look to be pushing known mineralization further south on the Gouglagou I zone and deeper on the Gouglagou II zone.

From the Gouglagou I zone, reverse circulation hole 186 hit 20 metres grading 1.17 grams gold per tonne from 76 metres depth, hole 189 cut 28 metres grading 1.11 grams gold from 96 metres and then 32 metres averaging 1.16 grams gold, and hole 187 hit 20 metres carrying 0.86 gram gold from 184 metres.

Riverstone reports that these results represent a new zone of mineralization along the southern edge of Gouglagou I. The company is still drilling the east and west edges of the deposit to determine its limits and the company has also not tested below the oxides. Drilling at Gouglagou I has largely been limited to about 100 metres depth, while at the other three deposits at Karma the mineralization has been shown to continue deeper.

Meanwhile at the Gouglagou II zone, roughly two kilometres southeast of Gouglagou I, diamond drilling to test the down plunge of high-grade shoots has returned encouraging results. Initial results from the program indicated stacked mineralized lenses, with both holes returned several thick mineralized intervals, while results from two more holes are pending.

Hole 11 from the program returned 38 metres grading 5.6 grams gold from 74 metres downhole, 14 metres averaging 2.92 grams gold from 132 metres, 28 metres carrying 2.39 grams gold from 162 metre and 6 metres averaging 1.98 grams gold from 222 metres.

Hole 12 returned 2 metres grading 3.65 grams gold from 24 metres depth, 34 metres grading 1.73 grams gold from 56 metres, 8 metres grading 3.68 grams gold from 188 metres and 36 metres grading 4.61 grams gold from 202 metres.

Overall, Riverstone has six drills contracted for its Karma project with a minimum of 90,000 metres scheduled.

The 814-sq.-km Karma project consists of five permits hosting four gold deposits: Gouglagou I and II, Kao and Rambo. Targets at Karma generally consist of structurally controlled gold deposits in elongate shear zones or shallowly dipping stacked sheets. According to the technical report, gold is disseminated or contained in weak stockworks of quartz veinlets in weakly altered sedimentary, volcanic and intrusive rocks and is associated with pyrite and arsenopyrite.

As of a February upgrade, Karma hosts 22.8 million indicated tonnes grading 1.1 grams gold for 810,000 contained oz. gold, plus 44.1 million inferred tonnes grading 0.79 gram gold for a further 1.1 million contained oz. gold. The upgrade, incorporating all four deposits, represented a 70% overall increase in contained gold compared with the May 2009 resource estimate. Karma also hosts the Nami target, which does not yet have a resource estimate.

Riverstone had roughly $4 million in cash on hand in early May. In April the company announced plans for a $15 million equity offering after its share price spiked to a brief high of $1.08, but withdrew the offering shortly after. The spike came after Roxgold (ROG-V), which is earning a 60% stake in three Riverstone properties in Burkina Faso, released impressive drill results including 20 metres grading 28.61 grams gold from the Yaramoko gold project.

Burkina Faso has seen public unrest and army munities in recent months, fuelled in part by escalating living costs, but Riverstone maintains that its operations have not been adversely affected.

Riverstone’s share price closed up 3¢ at 62¢ on the latest news. The company has a 52-week share price range between 45¢ and $1.09 and has 101.9 million shares outstanding.