Roxgold cuts high grades at Bagassi South target

VANCOUVER — Roxgold (TSXV: ROG; US-OTC: ROGFF) is cutting strong gold grades at its wholly owned Yaramoko gold project, 200 km southwest from Burkina Faso’s capital city of Ouagadougou. The Vancouver-based explorer is set to release a preliminary economic assessment (PEA) on its high-grade 55 zone in the third quarter, but results from the company’s property-wide exploration program appear to show  broader potential across its 167 sq. km exploration permit.

During a regional campaign involving mapping, prospecting, geophysics and geochemical sampling, Roxgold identified five potential targets on its property licence, including: Bagassi South, 109 Hill, the 117 zone, the 300 zone and Haho. The company has completed 4,400 metres of diamond drilling on the targets so far, and continues to cut gold grades reminiscent of early work at its 55 zone.

Roxgold aims to update the resource and complete its PEA by September on the 55 zone, where indicated resources total 1.3 million tonnes grading 15.7 grams gold per tonne for 679,000 contained oz. gold. Additional inferred resources clock in at 751,000 tonnes grading 8.9 grams gold for 216,000 contained oz. gold. The resource is constrained by a 3-gram gold cut-off grade.

Bagassi South has returned the best results for the company so far, with the new area defined as structurally complex quartz-sericite-pyrite alteration that runs 250 metres along strike, where gold is associated with veining and silicification.

Drill highlights from the target include: 4.4 metres grading 41.7 grams gold from 128 metres depth in hole 15; 3.8 metres averaging 25 grams gold from 110 metres in hole 11; and 1 metre of 16 grams gold, within a wider intercept of 3.1 grams gold over 10.2 metres, from 97 metres in hole 10.

“We are encouraged by the results of the current round of regional exploration,” says president and CEO John Dorward. He adds that the early stage success at Bagassi South follows Roxgold’s recent three-year extension for the Yaramoko permit, “and goes a long way towards validating our faith in the regional potential.”

Results at Roxgold’s other regional targets failed to hit the higher grades found at the 55 zone and Bagassi South. At the 300 zone the company cut 3.9 metres grading 1.8 grams gold from 60 metres in hole 300-003, while at 109 Hill Roxgold intersected 2.1 metres of 2 grams gold from 84 metres depth in hole 109-003. Results from the 117 zone were highlighted by 7 metres of 1 gram gold from 72 metres in hole 117-002, and Haho’s best interval cut 3.9 metres of 2 grams gold from 210 metres depth in hole 1.

“At Bagassi South, we are testing a new area that has delivered high-grade results in three holes so far. We are also encouraged by the amount of anomalous gold being intersected at other targets, especially along the northwest trending Bagassi Central structure, which is also believed to be a controlling structure for the high-grade 55 zone mineralization,” Dorward adds.

Future exploration at Roxgold’s regional targets will incorporate more induced-polarization orientation surveying, prospecting, mapping and follow-up drilling. The company has one tractor-mounted diamond rig than can drill to a depth of 200 metres on-site, which is engaged at Bagassi South.

In addition to Yaramoko, Roxgold has the Bissa West property — about 75 km northwest of Ouagadougou — and the Solna property in eastern Burkina Faso, which lies 375 km east of the capital. Roxgold does not have any work programs planned at Bissa West or Solna during 2013, and is considering its options for the property.

The company reported US$13 million in working capital at the end of March. Roxgold has traded within a 52-week range of 36¢ and $1.02, and closed at 40¢ per share at press time. The company maintains 143 million shares outstanding for a $57.3-million market capitalization.