The results of 10 diamond drill holes at the Goulagou I deposit will allow Riverstone Resources (RVS-V) to upgrade the resource model at its flagship Karma gold project in Burkina Faso.
The drilling — designed to confirm and extend known mineralization at depth and along strike, and 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 notable intercepts 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 downdip 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. Results have yet to be released.
Goulagou 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 1.6 million oz. gold and inferred resources of 18.9 million tonnes grading 0.93 gram gold for 600,000 oz. 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 oz. gold, with inferred resources adding 37.4 million tonnes averaging 0.8 gram gold for 959,000 oz. gold.
A large portion of the gold resources are at shallow depths under 200 metres vertical depth. Over 80% of the global mineral inventory is contained within the five Whittle pit shells.
The company has completed 52,000 more metres of drilling on the Karma project since the data cut-off for the resource estimation, and believes that the 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 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 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 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 is planning an upcoming preliminary economic assessment of the Karma project.
At presstime Riverstone’s shares traded at 60¢ apiece within a 52-week trading range of 43¢–$1.09. The company has 130 million shares, fully diluted.