Xtra-Gold rises on expansion drilling results from its Kibi gold project in Ghana

Shares of Xtra-Gold Resources (TSX: XTG; US-OTC: XTGRF) rose to their highest in a month on Thursday afternoon as the company reported results from ongoing resource expansion drilling at its wholly-owned Kibi gold project in Ghana.

Highlights from the 24 holes released  included 77 metres grading 1.59 grams gold per tonne starting from 122 metres in hole KBDD22481; and 43 metres grading 1.57 grams gold starting from 52 metres in hole KBDD22480.

The drilling, which totalled 3,553 metres, was completed in May. The campaign was focused on multiple resource expansion targets along the southwest (zone 3) segment, which is 1 km beyond the limits of the recently published updated resource estimate for Kibi.

“With just over 3,500 metres of drilling we have advanced this target from a near surface prospect to a multi-shoot gold system,” said the company’s CEO, James Longshore, in a press release. “We look forward to the further resource growth potential from the ongoing expansion drilling targeting both the up-plunge and down-plunge extensions.”

Located about 75 km away from the city of Akra, the Kibi project covers about 33.7 sq. km. and hosts indicated resources of 13.9 million tonnes grading 1.4 grams gold per tonne for 623,700 oz. gold. Inferred resources add 5.6 million tonnes grading 0.96 gram gold for 180,700 oz. gold. The resource was last updated in November last year.

Since July, the company has completed a total of 68 holes, covering 9,451 metres, on the project.

Highlights of drill results released in February included 16.5 metres grading 6.23 grams gold per tonne starting from 1.5 metres in hole KBDD22455 and 6 metres grading 6.19 grams gold starting from 52 metres in hole KBDD21434.

At press time in Toronto, shares of Xtra-Gold were trading at $1.07, up 15¢ or 16%, in the afternoon, within a 52-week trading range of 84¢ and $1.19. The company has 46.5 million shares outstanding for a market cap of about $49.8 million.