Roxgold finds more “spectacular” gold hits

Roxgold (ROG-V) keeps hitting intriguing results at its Yaramoko gold concession in western Burkina Faso, near the capital city Ouagadougou.

On Oct. 4, it released assays for 12 holes, eight of which were from Zone 55, in the Bagassi central area of the concession. Those results extended the strike length of the zone another 100 metres to the east.

The four most notable intercepts from Zone 55 include: 53.56 grams gold per tonne over 8 metres, 47.41 grams gold over 8.5 metres; 37.68 grams gold over 16 metres; and 100.58 grams over 4 metres.  

“The results are spectacular, exceeding our expectations,” says Roxgold’s director Al Fabbro.  

The company’s president and CEO, Robert Sibthorpe, added that the assays indicate the presence of a high-grade shoot in the eastern part of Zone 55. This area also hosts previously reported intercepts, including 62.74 grams gold per tonne over 16 metres.

Of the remaining four holes from the zone, one didn’t return significant results, while the other three cut intercepts ranging from 2 to 12 metres grading between 2 and 5.52 grams gold per tonne.

The eight assays from Zone 55 are from the 30 holes drilled on the zone during the summer program, of which 21 assays have been reported, and nine are still pending.

During that program, the company also drilled another 10 core holes on Zone 35, located 200 metres west of Zone 55. The company is still waiting assays for the zone.

Roxgold did post assays for the four holes it completed on the Bagassi South zone, which is 2.5 km to the southeast of zones 55 and 35. Assays show two holes didn’t hit significant mineralization, while the other two returned: 35.57 grams gold over 1, and 11.25 grams gold over 2 metres.

Roxgold says it still needs to fully grasp the gold mineralization at Bagassi South and will drill the zone further, however it will mainly focus its attention on zones 55 and 35.

Fabbro says the company will kick-off a 10,000-metre program on the zones in the next couple of weeks. Before doing so, the company expects to have completed the acquisition of Riverstone Resources‘ (RVS-V) 40% interest in Yaramoko and its remaining interests in the Bissa West and Solna projects for about $33.5 million in cash and shares.

Currently, Roxgold owns 60% of the 223.5-sq.-km Yaramoko property, and had an option to earn 60% in the other two projects, which are also in Burkina Faso.

Following the closing of the transaction, Roxgold will wholly own all three projects. To help finance the $17-million cash component of the deal, Roxgold entered a $20-million bought deal on Sept. 21.   

On the drill news, released on Oct. 4, the company’s shares were off 6% at 77¢. It was also a gloomy day for Canadian markets as the TSX Composite Index slipped 73.93 points, after tumbling 372 points a day earlier, and the spot price for gold fell US$35.8 per oz. on the day.  

On Oct. 5, Roxgold’s shares jumped 14% to 88¢, while the TSX and price of gold also managed to recover slightly.