Semafo drills West African nickel and gold concessions

Semafo (SMF-T) has released encouraging results from recent drilling at its Kaloum, Jean-Gobele and Lopal concessions in Guinea and Burkina Faso in western Africa.

At the Kaloum/Mount Kakoulima concession near the Guinean capital of Conakry, diamond drilling has confirmed the presence of a thin and spatially limited slab (250 metres by 100 metres by 1 metre) of massive sulphides in a sub-horizontally layered mafic to ultramafic intrusive complex.

Highlights include: 0.51 metre (from 26.6 metres) of 4.72% nickel, 1.51% copper, 0.22% cobalt, 0.33 gram platinum and 1.57 grams palladium per tonne in hole 11; 1 metre (from 15.8 metres) of 4.51% nickel, 1.3% copper, 0.23% cobalt, 0.34 gram platinum and 1.69 grams palladium in hole 16; and 0.32 metre (from 21.7 metres) of 4.34% nickel, 1.36% copper, 0.25% cobalt, 0.34 gram platinum and 1.86 grams palladium in hole 17.

The sulphides identified are mainly pyrrhotite, chalcopyrite, pentlandite and pyrite, with accessory bornite and magnetite.

Semafo and Montreal-based Afcan Mining (AFK-M) each hold a 50% interest in the Kaloum/Mount Kakoulima concession.

At Semafo’s 100%-owned Jean-Gobele concession in northeastern Guinea, ongoing diamond drilling of the Gobele B zone has extended the structure to the northeast for another 300 metres. The best results are: 6.5 metres (from 124.5 metres) grading 2.81 grams gold per tonne in hole 99; 10 metres (from surface) of 3.92 grams gold and 3 metres (from 167.5 metres) of 26.25 grams gold in hole 103; 8 metres (from 122 metres) of 1.32 grams gold in hole 106; 3 metres (from 86 metres) of 8.01 grams gold in hole 110; and 15 metres (from 73 metres) of 7.08 grams gold in hole 111.

At the Lopal gold concession in Burkina Faso, a follow-up diamond-drilling program has confirmed the presence of a gold anomaly.

Hole 4 intersected 8 metres (from 42.5 metres) grading 26.6 grams gold. Hole 5 cut 8.4 metres (from 75 metres) of 5.96 grams gold, including 2.5 metres (from 79.6 metres) of 19.42 grams gold. The holes showed that the gold anomaly occurs in quartz lenses at a contact between upper felsic tuffs and lower carbonaceous shales.

Continued drilling this month will test the possibility that a planar structure links the mineralized intersections.

Semafo has a 75% interest in Lopal, with local partners holding the remainder.

For the fiscal year ended Dec. 31, 1997, Semafo had a net income of $503,977 (or 2cents per share) compared with $73,928 in 1996. The company attributes the change mainly to a longer period of interest earned on the $32.7 million raised in a public equity financing completed in May 1996.

Operating and administrative expenses were $1.17 million in 1997, unchanged from the previous year.

Semafo continues to have a strong cash position, with more than $30 million on hand at the end of 1997.