AMN - COTE D’IVOIRE: Volcanic intends acquiring gold properties

Volcanic Gold Mines has entered into a binding Memorandum of Understanding to acquire a number of gold properties in Cote D'Ivoire. This acquisition will complement Volcanic’s existing property holdings in the Mandiana district of neighbouring Guinea.

The agreement would see Volcanic acquire up to 100% of JOFEMA Mineral Resources SARL, a private company registered in Cote D'Ivoire. 

The assets of JOFEMA under option consist of near-adjacent exploration permits and exploration permit renewals known as La Debo and Soubré.

Together these projects cover in excess of 600sqkm and fall on a major mineralising shear zone within one of West Africa’s fastest developing gold provinces. JOFEMA holds a direct 100% interest in the properties.

This acquisition will allow the company to benefit from a valuable consolidation opportunity in a leading African mining jurisdiction. The company remains committed to the advancement of its Guinean assets.

JOFEMA has completed more than 18,000 metres of reverse circulation and diamond drilling at La Debo, as well as nearly 40,000 metres of RAB, air-core and auger drilling at the property.

In 2016 an inferred resource of 9.5 million tonnes at a grade of 1.3 g/t for 396,000 ounces of gold was defined in two small isolated bodies. This resource has not been verified by Volcanic and is therefore historic in nature. 

More than 7500 surface geochemical samples were collected at La Debo, and on the basis of this data, in combination with limited RAB drilling results, a number of large, consistent targets are observable along strike from the historic resource and remain largely untested.

Of particular interest are extensive and continuous soil geochemical anomalies occurring within recognisable and persistent structural zones in proximity to igneous intrusions at La Debo, and Soubré.

Importantly, such a combination of circumstances gives rise to gold mineralisation of economic proportion elsewhere within the Birimian rocks of Cote D'Ivoire, a notable example being the nearby Bonikro mine. This hosts an indicated resource of 1.3 million ounces at 1.4 g/t gold and an inferred resource of 770,000 ounces at 0.92 g/t.

The anomalies at La Debo and La Debo South cover a continuous area of about 10sqkm, and have been subject of minimal drill testing, which leave important mineralised structures open laterally and at depth.

At La Debo, for example, four consecutive shallow RAB holes at 20-metre intervals within the soil anomaly end in greater than 1 g/t gold assays, however, to date no follow-up of this target has occurred, and elsewhere follow-up is minimal.

Further extensive gold in soil anomalism is observed at Soubré, where it is similarly juxtaposed to geological structures.

Each of these targets provides Volcanic with the opportunity to potentially grow its resource base using existing data and low-cost conventional exploration drilling techniques.

www.volgold.com