Market cap: $203 million
Cash estimate: $37 million
Country: Burkina Faso
Ownership: 100 percent
Resources: 1.99 million tonnes @ 11.83 g/t Au
Project status: Construction — brownfields exploration
Roxgold announced high-grade gold mineralization from development infill drilling on the 55 Zone on the Company's 100% owned Yaramoko project in Burkina Faso. The Company released the first 21 holes of a planned 67 hole program covering the 300 metre long high-grade zone that comprises the first development area in the 55 Zone. Infill drilling at 12.5 metres spacing in the 55 Zone included a number of high-grade intervals including; 5.9 metres (4.8 metres true width) grading 200.7 g/t Au, 5.7 metres (4.8 true) at 135.3 g/t Au and 4.2 metres (3.1 true) grading 123 g/t Au. Step-out diamond drilling on the Bagassi South target continues to hit wide zones of mineralization including 9.4 metres grading 8.9 g/t Au extending the QV1 structure an additional 30 metres to the southeast. The mineralized zone is believed to be cut off by a younger dyke and thus remains untested to the southeast on the other side of the dyke. 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 while the mineralization towards the dyke in the south east is hosted in wider zones of quartz breccia. 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/ozAu. 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 @ 141.4 g/t Au.
Current holes: 5.9 metres @ 200.7 g/t Au (55 Zone); 9.4 metres @ 8.9 g/t Au (Bagassi South)
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 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: Roxgold Inc (TSX:ROG). Integra Gold Corp. (ICG) is currently under coverage at Mackie Research Capital by analyst Peter Campbell. In March 2014, Peter Campbell visited the Lamaque Gold Project in Val-d'Or, Québec. Travel to and from the site in Val d'Or were paid by Integra Gold Corp. Foran Mining Corp. (FOM) is covered at Mackie Research by analyst Peter Campbell. In February 2013, an Analyst from Mackie Research Capital Corporation visited Foran's McIlvenna Bay Project site. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation.
Analyst CertificationI, 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. Drill Tracker Weekly: Roxgold Confirms High-grade Gold Core at 55 Zone from Gold Investing News