Cora Gold upbeat on drill results from Sanankoro

West Africa-focussed gold exploration company Cora Gold announced the first drill results from its campaign at the Sanankoro Gold Project in southern Mali on Tuesday, which began in November.

The AIM-traded firm said the drilling mainly targeted deeper oxide and sulphide extensions to the maiden pit-constrained inferred mineral resource of five million tonnes, at 1.6 grams of gold per tonne, for 265,000 ounces of gold.

It said the highlights from the results included hole SC241, with 2.61 grams of gold per tonne over 29 metres from 82 metres, including 3.89 grams of gold per tonne over 12 metres in the sulphide portion of the hole.

At hole SC246, it noted 4.2 grams of gold per tonne over seven metres from 101 metres, including 8.38 grams of gold per tonne over three metres, and at hole SC248 it pointed out 2.05 grams of gold per tonne over 14 metres from 61 metres, including 3.31 grams of gold per tonne over seven metres.

Finally, at hole SC248 the company highlighted 1.08 grams of gold per tonne over 18 metres from 84 metres, and at hole SC250, there was 1.68 grams of gold per tonne over four metres from 137 metres, with the hole ending in mineralisation.

The board said further results from additional drilling at Sanankoro were expected in the coming weeks.

“Cora has successfully intersected multiple higher-grade gold intercepts at Sanankoro in its latest drill programme,” said chief executive officer Bert Monro.

“This set of results mainly tested continuity of mineralisation at depth, in part below the limit of the existing resource pit shells.

“The current resource has a range of pit depths from about 40 to 100 metres, so there is significant scope to increase the open pit resources with further successful drilling.”

Monro said the firm’s recently-announced scoping study, which was calculated on its current maiden pit-constrained inferred mineral resource of five million tonnes at 1.6 grams of gold per tonne for 265,000 ounces of gold, highlighted the “attractive economic returns” possible at Sanankoro, including an internal rate of return of 84% and capital expenditure payback of 18 months.

“We look forward to announcing further results from this drilling programme covering predominantly potential extensions to existing resources.”

At 1105 GMT, shares in Cora Gold were up 5.96% at 6.22p.