The results of ten diamond drill holes at the Goulagou I deposit will allow Riverstone Resources (RVS-V, RVREF-O) to upgrade the resource model at its flagship Karma gold project in Burkina Faso, the company says.
The drilling—designed to confirm and extend known mineralization at depth and along strike and to move more inferred resources into the indicated category—did not disappoint management. Significant assay intervals included 110 metres of 1.73 grams gold per tonne including 66 metres of 2.04 grams gold in hole 17, and 1.68 grams gold over 80 metres including 2.18 grams over 18 metres in hole 18.
Other intercepts of note were 1.83 grams gold over 66 metres in hole 16, including 2.39 grams gold over 32 metres, and hole 24, which returned 42 metres of 2.5 grams gold and 1.23 grams gold over 24 metres in hole 21.
The drilling has extended mineralization to more than 2,000 metres east-west and as much as 200 metres down-dip in areas of deeper drilling. The deposit remains open along strike in both directions as well as to depth.
Follow-up holes have been drilled below several of the reported intercepts and assays for those holes have yet to be released.
Goulagou I is part of the company’s Karma project, which comprises an in-pit Whittle gold indicated resource of 47.3 million tonnes grading 1.1 grams gold for about 1.6 million ounces of gold and inferred resources of 18.9 million tonnes grading 0.93 gram gold for 600,000 ounces of gold.
The global mineral inventory inside and outside of Whittle pit shells consists of indicated resources of 54.1 million tonnes at an average grade of 1.02 grams gold per tonne for 1.77 million ounces of gold with inferred resources adding 37.4 million tonnes averaging 0.8 gram gold for 959,000 ounces of gold.
A significant portion of the gold resources at Karma are at shallow depths (less than 200 metres vertical depth) and over 80% of the global mineral inventory is contained with the five Whittle pit shells.
The company has completed about 52,000 more metres of drilling on the Karma project since the data cut-off for the resource estimation, and believes that the additional drill results will add to the overall resource of the five Karma project deposits: Rambo, Kao, Goulagou I, Goulagou II and Nami.
The permits are in the north-central region of the country, about 100 km north of Ouagadougou. Gold resources are shallow with the bulk in oxide material above 100 metres in depth. The company believes there is the potential for a centralized gold processing facility to handle material from all of the deposits.
Earlier this month Riverstone reported assays from the Kao deposit, significant intersects of which included 10 metres of 15.88 grams gold, 20 metres of 2.56 grams gold, 18 metres of 2.07 grams gold, 32 metres of 1.32 grams gold and 16 metres of 1.21 grams gold.
The company plans to start a preliminary economic assessment on Karma in the first quarter of this year.
At presstime Riverstone’s shares were trading at 60¢ apiece within a 52-week trading range of 43¢ -$1.09 The company has about 130 million shares, fully diluted.