Orezone cuts new zones at Kantela

Orezone Resources (ORZ-T) is encouraged by the results of a 2,000-metre, 39-hole rotary air blast (RAB) drill program on its Kantela gold property in Mali.

The holes tested three targets recently identified by soil-sampling, trenching and pitting. Orezone says two of the zones exhibit economic potential and warrant further drilling.

Seventeen holes, collared on the centre of a 2-km-long, gold-in-soil anomaly, cut a 175-metre-wide mineralized envelope averaging more than 0.1 gram gold per tonne. A 20-metre-wide core area averages 1.2 grams.

The anomaly trends northeasterly like high-grade zones at the neighbouring Sadiola gold mine of AngloGold (AU-N) and Iamgold (IMG-T). The mine lies 15 km to the north.

Three holes on the quartz breccia zone identified an easterly dipping structure and returned up to 12 metres grading 9.8 grams gold. Pervious surface sampling yielded up to 48.5 grams gold.

The company believes that the zones are part of a system of northeasterly and northwesterly trending shear zones that contain abundant quartz stockwork and veining related to major regional fault zones.

The holes, which average a vertical depth of 40 metres, were the first to confirm the potential of surface mineralization at depth.

“We are very encouraged by these results as they indicate there is potential to host a satellite resource to the neighbouring Sadiola mine,” says Ron Little, Orezone’s president, in a prepared statement. “We have not crossed out the possibility for a stand-alone resource as the RAB drilling was not deep enough and the targets have not been sufficiently tested in length.”

More drilling and trenching are planned for the beginning of the dry season in November.

Orezone can earn up to a 100% interest in Kantela by spending US$1.5 million on work and paying $200,000 in cash over five years.

Teck Cominco holds the first right of refusal to enter a joint-venture agreement with Orezone for the first $300,000 spent on Kantela. So far, $200,000 has been spent.

The major can earn 60% interests in the Kantela and Shea gold properties (the latter is in Ghana) by backing Orezone’s existing options and funding exploration that leads to a mining decision at either property.