TrueGold makes a good first impression

Riverstone Resources’ name change seems to be doing the trick.

The company redubbed itself TrueGold Mining (TGM-V) at the end of February, just before releasing the drill results that sent its share price rising.

The results come from its flagship Karma gold project in Burkina Faso, and they show broad intersections of high-grade gold at the Goulagou I and Goulagou II deposits.

The best intercepts includes 56 metres grading 3.75 grams gold, 24 metres of 4.43 grams gold, 22 metres of 2.53 grams gold and 14 metres of 2.65 grams gold. All of these results came out of separate holes.

The drill programs at the Goulagou deposits totalled 1,369 metres, with 16 holes drilled within the pit shells.

Drilling was part of the company’s metallurgical program, as it pushes to complete a feasibility study on its Karma project. The study could wrap-up by mid-year.

TrueGold expects to have environmental permits for the Goulagou I, Goulagou II and Rambo deposits by the third quarter. If the permits come in before October they could clear the way for fourth-quarter development, with a mine commissioned by the end of 2014.

Since releasing the news on March 6 the company’s shares have climbed 20%, or 7¢, and traded for 42¢ in Toronto on March 7.

Haywood Securities analyst Tara Hassan initiated coverage, holding a “sector outperform” and “speculative risk” rating.
“True Gold offers the opportunity to invest in a near-term producer with exploration upside and a high-calibre management team,” Hassan writes in her report.

The company plans to spend $3 million on exploration at Karma this year, and looks to add leachable resources that are within trucking distance to Karma’s future facility. It has done work on further reaches of its claims with the aim of outlining near-surface oxide ounces.