Riverstone Resources’ name change seems to be doing the trick.
The company changed its name to TrueGold Mining (TGM-V) at the end of February, just before releasing drill results that caught the Street’s attention and sent its share price rising.
The results are form its flagship Karma Gold Project in Burkina Faso and they showed broad intersections of high-grade gold at the Goulagou I and Goulagou II deposits.
The best intercepts included 56 metres grading 3.75 grams gold; 24 metres grading 4.43 grams gold; 22 metres grading 2.53 grams gold and 14 metres grading 2.65 grams gold. All of those results came out of separate holes.
The drill programs at the two Goulagou deposits totaled 1,369.40 metres and 16 holes were drilled within the pit shells.
That drilling was done as part of its metallurgical program, which is part of its push to complete a feasibility study on Karma Project. The study is expected to be finished by the middle of this year.
TrueGold says it expects to have the necessary environmental permits for Goulagou I, Goulagou II, and Rambo deposits by the third quarter of this year, and if they do come in that time it would clear the way for development starting in the fourth quarter.
If all of that falls into place, the company says a mine could be commissioned by the end of 2014.
Since releasing the news on March 6 the company’s shares have climbed 20% or 7¢ and were trading for 42¢ in Toronto on March 7.
Haywood Securities analyst Tara Hassan initiated coverage and with a ‘sector outperform rating’ and a ‘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 wrote in her report.
The company plans to spend $3 million on exploration at Karma this year and is looking to add leachable resources that are within trucking distance to the future facility at Karma. It has recently done work on further reaches of its claims with the aim of outlining near-surface, oxide ounces.