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Increase in Inferred Resource Estimate for the Kossanto Gold Project, Mali
Alecto Minerals plc (LSE:ALO), the AIM quoted mineral exploration company focussed on West and East Africa, has announced a 28% increase in its independent Mineral Resource estimate for Gourbassi to 247,000 ounces of gold.
This increase follows the recent completion of additional reverse circulation drilling at Gourbassi West, which together with Gourbassi East, forms one of two main target areas at the Company’s wholly owned Kossanto Gold Project in Western Mali.
Highlights:
· Updated Mineral Resource estimate for Gourbassi of 6.72Mt at an average grade of 1.14g/t Au for 247,000 oz Au with a 0.5g/t Au cut-off, reported in accordance with the guidelines of the JORC Code (2012) by Wardell-Armstrong International (‘WAI’) (the ‘Updated Mineral Resource’)
· 131% increase on the pre-existing (June 2013) independent Inferred Mineral Resource estimate reported in accordance with the guidelines of the JORC Code (2012) for Gourbassi achieved since Alecto acquired the Kossanto Project in October 2013
· 28% increase from the Company’s previously announced Inferred Mineral Resource estimate of 2 April 2014
· Drilling has increased both the size of the resource, as well as the confidence the Company has in the mineralisation at Gourbassi
o Updated Mineral Resource reflects the six additional RC holes for 864m recently completed to infill the central section of GRBW
· Potential exists to continue to increase the resource estimate as demonstrated by positive indications from the recently completed rotary air blast (‘RAB’) drilling campaign and the presence of robust mineralisation in the northern-most hole which suggests that mineralisation remains open to the north at GRBW
· Drill targets are identified using low-cost drilling in-house RAB rig
· Gourbassi and Farikounda permits, which cover the eastern portion of the Kossanto Project, consolidated into the exploration licence agreement for Farikounda which expires in 2018
Mark Jones, CEO of Alecto, commented:
“Since acquiring the Kossanto Project less than a year ago, we have increased the Inferred Mineral Resource estimate by 131%, demonstrating our determination and ability to swiftly deliver ounces and increase the project’s economic potential. These additional ounces have been added at a direct cost of just US$4.70 per ounce and confirms the Company’s ability to add value at low cost.
“With the knowledge gained from this season’s drilling campaign, we will continue to test, using our in-house RAB rig in the first instance, for extensions to the resource zone at Gourbassi. We are highly confident that we will continue to add value through further potential increases in the Inferred Mineral Resource estimate reported in accordance with the guidelines of the JORC Code (2012) for Gourbassi. This, coupled with the Kossanto Project’s prime location in western Mali in close proximity to many complementary deposits and the positive metallurgical results announced in April 2014, underpins what we believe will be an exciting and economic mining opportunity.
“As we near the end of the current dry season in Mali, we have made good progress with the project and would like to thank the Government of Mali for its continued support, in particular in recognising the advantages of our consolidation request that has now seen the permits of Gourbassi and Farikounda conjoined. This provides us with additional time to explore and test the economic viability of a mining plan in line with our focus on developing Kossanto towards potential future production.”
