Riverstone drilling enriches its Karma

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

From the Gouglagou I zone, RC 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 this represents a new zone of mineralization along the southern edge of Gouglagou I. The company is drilling the east and west edges of the deposit to determine its limits, but has not yet tested below the oxides. Drilling at Gouglagou I is largely limited to 100 metres depth, while mineralization continues deeper at Karma’s three other deposits. 

At the Gouglagou II zone, 2 km 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 returning several thick mineralized intervals. Results from two more holes are pending.

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

Hole 12 returned 2 metres grading 3.65 grams gold from 24 metres, 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.

Riverstone has contracted six drills for its Karma project, with a minimum 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 fragile stockworks of quartz veinlets in weakly altered sedimentary, volcanic and intrusive rocks. Gold is also 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, is a 70% overall increase in contained gold compared with the May 2009 resource estimate.

Riverstone had roughly $4 million cash 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 mutinies in recent months, fuelled in part by escalating living costs. Riverstone maintains its operations have not been adversely affected.

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