SEMAFO (TSX: SMF; US-OTC: SEMFF) has tabled a maiden resource for the Bantou gold zone, located about 170 km south of its Mana gold mine in Burkina Faso, totalling 2.1 million inferred tonnes grading 5.35 grams gold for 361,000 oz. gold.
SEMAFO based its resource on more than 12,700 metres drilled across 80 holes. In 2018 it drilled more than 4,200 metres across 13 holes testing the deposit’s down dip extension, as well as more than 2,500 metres across 19 holes testing the deposit’s near-surface southern extension.
Highlights from the program include 52.97 grams gold over 6 metres from 196 metres downhole and 16.43 grams gold over 13 metres from 216 metres downhole.
The company says gold mineralization at the Bantou zone remains open along strike and at depth. The company also discovered the Bantou proximal zone, 500 metres west of Bantou, where it says it cut near-surface gold mineralization over 400 metres of strike length.
Highlights from the Bantou Proximal zone include 5.21 grams gold over 11 metres from 62 metres downhole and 7.35 grams gold over 3 metres from 95 metres downhole.
The company also drilled more than 2,400 metres at its Tankoro gold target, southeast of Bantou, where highlights included 6.41 grams gold over 4 metres from 47 metres downhole and 22.76 grams gold over 3 metres from 49 metres downhole.
SEMAFO currently intends to spend $3 million exploration Bantou in 2019, but says it may spend more if it completes its proposed Savary Gold (TSXV: SCA; US-OTC: SVVYF) acquisition.
The proposed transaction values Savary at 10¢ per share, or $22.7 million. SEMAFO already owns 15.5% of Savary. Shares of Savary are currently trading at 8¢ with a 52-week range of 3¢ to 9¢.
SEMAFO produced 244,600 oz. gold in 2018, in line with its 2018 guidance. It expects to produce between 390,000 oz. gold and 430,000 oz. gold in 2019. It will spend at least $19 million on exploration in 2019, half of which it has allocated to its Boungou gold mine.
Shares of SEMAFO are currently trading at $2.90 with a 52-week range of $2.24 to $4.14. The company has a $942 million market capitalization.
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