St. Jude sniffs gold

Drilling by St. Jude Resources (SJD-T) has confirmed the presence of gold mineralization at the Goulagou property in Burkina Faso.

The Vancouver-based junior sunk nine reverse-circulation holes to substantiate an old hole that averaged 2.53 grams per tonne over 22 metres, 3.33 grams over 34 metres and 6.76 grams over 17 metres. The recent results were indeed similar, varying from 0.83 to 3.6 grams over 3-50 metres.

In the late 1990s, Channel Resources (CHU-T) sunk 311 holes to outline 19.4 million tonnes in two parallel zones grading 1.12 grams. The resource is what attracted Placer Dome (PDG-T) to the project in 2000, though the major walked away a year later.

Mineralization is mainly associated with quartz veinlets and zones of silicification in steeply south-dipping graphitic argillites. The host rocks are oxidized down to 100 metres below surface.

St. Jude can earn an 80% interest in the 209-sq.-km property by paying US$300,000 over five years and another 10% by paying US$1 million within one year of the first gold pour. The vendors retain a 5% net profits interest, and the government retains a 10% carried interest.