Roxgold has ‘spectacular’ gold hits in Burkina Faso

Vancouver-based Roxgold (ROG-V) keeps reporting intriguing results at its Yaramoko gold concession in western Burkina Faso, near 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 9
metres, 37.68 grams gold over 16 metres and 100.58 grams over 4 metres.

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

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

One of the remaining four holes from the zone failed to return significant results. The other three cut mineralized intercepts that anged from 2 metres to 12 metres, grading between 2 grams gold and 5.52 grams gold per tonne.

The eight assays from zone 55 are from 30 holes drilled during the summer program. Twenty-one assays have been reported, and nine are pending.

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

Roxgold posted 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 metre and 11.25 grams gold over 2 metres.

Roxgold says it needs to fully grasp the gold mineralization at Bagassi South and will drill the zone further, but plans to 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 $33.5 million in cash and shares.

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 transaction’s close, 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 news released Oct. 4, the company’s shares were off 6% to 77¢. But it was a gloomy day for Canadian markets as well, with the TSX Composite Index slipping 73.93 points after tumbling 372 points a day earlier. The spot price for gold also fell US$35.8 per oz. on the day. 

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