Reverse circulation drilling by Montreal-based
During July, Semafo sunk 26 reverse circulation (RC) holes for a total of 1,924 metres. The holes were aimed at confirming the continuity of the zone and testing for extensions.
The latest holes bring Wona’s drill-identified strike length to 2,800 metres. The last 1,000 metres of the zone average 25 metres in true thickness. Almost closed at the south end, the zone widens to the northeast while plunging to the north onto the adjoining Kona property.
Among the better results from the recent drill campaign were three reverse-circulation holes near the eastern end of the zone. Hole WRC-59 intersected 47 metres grading 4.4 grams gold, starting at 42 metres below surface; WRC-60 cut 42 metres running 3.36 grams gold, and WRC-61, 19 metres of 3.05 grams.
About 100 metres to the west, hole WRC-82 intersected a 25-metre zone of mineralization grading 3.01 grams gold per tonne, and hole WRC-83 cut 12 metres averaging 2.37 grams gold.
Mineralization at Wona appears to be hosted by three vein structures in highly deformed acidic tuffs. Silification and quartz veining occur locally.
Late last year, Semafo estimated Wona’s indicated resource at 3.5 million tonnes grading 2.38 grams gold per tonne, based on a cutoff grade of 0.5 gram gold. Of the total resource, 1.8 million tonnes of oxide material run 2.45 grams gold; the remaining 1.7 million tonnes of sulphide material average 2.31 grams gold. The oxide resource has an average depth of 60 metres.
Preliminary bottle roll test on RC cuttings from Wona returned an average recovery of 90% for oxide material above 50 metres.
Semafo has a 95% interest in the Mana property, 200 km west of Ouagadougou, Burkina Faso’s capital city.
Earlier this summer, a 23-hole, 1,332-metre RC drilling campaign on the Mana property’s Nyafe gold-bearing structure, about 8 km to the south of Wona, extended mineralization about 300 metres to the northeast for a total strike length of more than 2,400 metres. The oxidation zone has an average vertical depth of 50 metres.
Mineralization at Nyafe is associated with a major fault zone hosted by altered mafic schists interbedded with massive andesitic lavas. Most of the gold-bearing rocks are highly altered and schistose mafic tuffs, and they too are locally quartz-veined.
Semafo has outlined about 1 million tonnes grading 8.5 grams gold per tonne at Nyafe.
A third deposit at Mana, Maoula, lies 3 km south of Nyafe and has been traced for 600 metres along a northeast strike. Maoula remains open at both ends and at depth. Based on preliminary results, oxide material runs to depths of about 50 to 60 metres.
Meanwhile, the start of mining at the Kiniero gold project in Guinea provided Semafo with substantial cash flow in the second quarter of 2002, although the company still posted a loss.
Kiniero (formerly called the Jean-Gobele project) poured 11,987 oz. gold between the start of production on April 25 and the end of the quarter on June 30. The production came from 94,000 tonnes of ore grading 6.4 grams gold per tonne. After some initial recovery problems, production is now meeting budget.
With early capital costs at Kiniero still being paid down, Semafo lost US$329,000 on revenue of US$3.4 million in the three months ended June 30. In the corresponding period of 2001, the company had no revenue and lost US$400,000. Operating cash flow, however, was US$1.1 million, against an operating outflow of US$505,000 in the second quarter of 2001.
For the first half of the year, Semafo’s loss was US$625,000, on the identical US$3.4 million in revenue, and the company had an operating cash flow of US$834,000. It had about US$3.8 million in cash at the end of June.
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