Roscan Gold reports solid grades at Kandiolé in Mali

Roscan Gold (TSXV: ROS; US-OTC: RCGCF) has announced assay results from the Kabaya KB3 target on its Kandiolé gold project in Mali, 400 km from the country’s capital of Bamako and 25 km east of B2Gold’s (TSX: BTO; NYSE: BTG) Fekola mine.

The results span 18 holes totaling 2,220 metres and highlights include hole RCDBS22‐0119, which intersected 3.09 grams gold per tonne over 12 metres from 118 metres downhole as well as 7.49 grams gold over 3 metres from 120 metres. Another hole, RCDBS22‐0118, cut 1.49 grams gold over 37 metres from 83 metres downhole and RCDBS22‐0103 returned 1.03 grams gold over 34 metres from 12 metres.

The drill results at KB3 outline an estimated strike length of 350 metres, a width of 100 metres and a vertical depth of 150 metres. The zone remains open laterally and at depth.

The KB3 zone is a satellite deposit north of the main Kabaya resource (KB1 and KB2).

Kabaya hosts indicated resources of 8.5 million tonnes grading 0.9 gram gold for 234,000 ounces. Inferred resources add an additional 1.2 million tonnes grading 0.8 gram gold for 32,700 ounces.

“Drilling at Kabaya continues to expand the footprint of the gold mineralization beyond the current footprints of the maiden resource,” Nana Sangmuah, the company’s president and CEO, commented in a news release. “We are excited by the fresh rock intercepts at KB3, which points to a larger mineralized system with the 850-metre gap zone between KB1-2 and KB-3 yet to be fully tested. This is the second new zone discovered outside the perimeter of the known resource at Kabaya and will be further tested in the next round of drilling to commence before Christmas.”

Roscan acquired the Kabaya deposit in July 2020 and the 402-sq.-km Kandiolé project in 2018. In addition to its proximity to B2Gold’s Fekola mine, the project, situated in the Birimian Greenstone Belt, one of Africa’s most productive regions, is within trucking distance of Iamgold’s (TSX: IMG; NYSE: IAG) Boto and Diakha deposits.

The latest assay results follow Roscan’s royalty financing deal with Osisko Gold Royalties (TSX: OR; NYSE: OR) on Dec. 2. Under the deal, Osisko will acquire a 1% net smelter return (NSR) royalty on Kandiolé in exchange for $5 million. Osisko has the option to purchase a second 1% NSR at any time for an additional $5 million.

Ryan Walker, an analyst at Echelon Capital Markets, noted that Osisko’s investment “represents an endorsement of the project,” adding in a research note that he views the royalty agreement “as prudent given the still challenging market for exploration- and development-stage companies.”

The Canadian gold exploration company is focused on expanding its resource footprint in West Africa. Its current targets in western Mali include the continent’s most productive greenstone belts.

At press time in Toronto, Roscan was trading at 22¢ a share within a 52-week range of 14¢ and 42¢. The company has a market capitalization of $79.64 million.