Market cap: $177 million
Cash estimate: $37 million
Country: Burkina Faso
Ownership: 100 percent
Resources: 1.99 million tonnes @ 11.83 g/t Au (probable)
Project status: Construction — brownfields exploration
Roxgold announced high-grade gold mineralization over wider zones than previously drilled intervals on its Bagassi South zone, located two kilometres south of the main 55 zone, on the Company's 100% owned Yaramoko project in Burkina Faso. Step-out diamond drilling intersected 10.9 metres grading 23.6 g/t Au at a depth of 138 metres with a second interval of 8.2 metres of 6.0 g/t at 153 metres depth. An additional hole returned 19.4 metres of 10.4 g/t Au from 171 metres depth. The holes are significant in that they intersected significantly wider zones of mineralization as well as extending the high-grade QV1 structure 200 metres along strike. The mineralization differs from the previously reported intervals of discreet quartz veins. The wider intervals comprise a brecciated structure situated beneath a shallowly dipping mafic volcanic unit. The Drill Tracker chart clearly shows the higher grade nature of Yaramoko relative to other West African gold projects as well as the wider zones in the new breccia zone. The Bagassi South trend has been outlined by artisanal workings, geological mapping, geophysics, soil geochemistry and drilling over 1.75 kilometres strike length. The main zone is a complex 200 metre wide zone of sheared quartz, sericite and pyrite alteration zone, hosting an array of en echelon quartz veins. The new breccia structure associated with the mafic dyke appears to be truncated by a younger vertical dyke. The Company plans to test for the continuation of the structure on the southeast side of the dyke. On the main 55 zone, the Company has outlined a probable mineral reserve estimate of 1.99 million tonnes grading 11.8 g/t Au. The April 22, 2014 feasibility study outlines a low capex and low operating cost project, with after-tax NPV (5%) of USD$250 million, and an IRR of 48%. The report projects a pre-production capital cost of USD$106.5 million and an all in sustaining operating cost of USD$590/oz. Au. The economics were calculated using a USD$1,300 gold price with the project remaining robust down to USD$1,100 gold (NPV USD$168 million with an IRR of 35.2%). The project is estimated to average 99,500 oz. of gold per year. The Company is currently starting earthworks and expects to commence plant construction and underground portal access in Q2/2015. The project is expected to be commissioned with first production in Q2/2016. The Company has approximately C$37 million in hand and expects to close US$75 debt facility with BNP Paribas and Societe Generale in Q2 2015.
Discovery history and key intervals: Riverstone acquired Yaramoko project in 2006 and Roxgold optioned the property in 2010. First drilling by Roxgold on Bagassi Central: 6 metres @ 24.6 g/t Au. Bagassi South (2012): 2 metres @ 14.1 g/t Au.
Current holes: 10.9 metres @ 23.6 g/t Au; 19.4 metres @ 10.4 g/t Au
Risks AnalysisData contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note - a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity - it is an information reference source to help quantify the meaning and relevance of early stage exploration results. Relevant Disclosures Applicable to: Drill Tracker Weekly 1. The research analyst or a member of the research analyst's household owns and/or has options to acquire shares of the subject issuer. At the date of this release the author, Wayne Hewgill, owns shares in the following companies: Fission Uranium Corp. (TSX.FCU), Roxgold Inc (TSX:ROG). Analyst Certification I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst's personal views and (ii) no part of the research analyst's compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.