MONTREAL, Feb. 20, 2019 (GLOBE NEWSWIRE) -- ALGOLD RESOURCES LTD. (TSXV: ALG – the “Corporation”) today provided an update on the ongoing activities at its Tijirit Gold Project in Mauritania.
In Algold’s press release dated January 4, 2019, it was announced that the Mauritanian Ministry of Oil, Energy and Mines (the “Ministry”) granted the Corporation a 12-month extension to complete the Tijirit Gold Project feasibility study. As the additional time provides for ample opportunity for further exploration, a Phase V drilling program is being planned. The program will focus on increasing resources at Eleonore by targeting the down-dip and down-plunge extension of the high-grade gold intersection, as well as better defining the potential of Eleonore East and Salma zones.
Since the acquisition of the properties in March 2016 (reference Algold’s press release dated March 11, 2016), Algold conducted exploration consisting of data compilation, geological mapping, Landsat imagery acquisition and litho-structural analysis, detailed structural studies and 50,000 meters of drilling. This led to the completion of a National Instrument 43-101 Resource Estimate (February 26, 2018) (“Resource Estimate), which demonstrates, using a cut-off grade (“COG”) of 1.5 g/t Au and without pit constraints, that the high-grade Eleonore zone hosts 94,250 ounces of gold at an average grade of 4.08 g/t Au in the indicated category and 394,690 ounces of gold at an average grade of 4.07 g/t Au in the inferred category. Further, the Lily and Sophie zones, using an in-pit COG of 0.4 g/t Au and 1.7 g/t Au under pits, includes measured and indicated resources of 75,200 ounces of gold at an average grade of 0.94 g/t Au and inferred resources of 254,100 ounces of gold at an average grade of 1.06 g/t Au. It is important to note that these resources were estimated from the surface to approximately 150 meters vertical depth and that the deposit remains open down dip and down plunge.
This Resource Estimate was followed up with a positive Preliminary Economic Assessment (May 22, 2018) (“PEA”), which served to reiterate the Corporation’s strong commitment to rapidly develop the Tijirit Gold Project. Achievement of this milestone also contributed to further strengthen the strong relationship that Algold has developed with the Government of Mauritania by delivering, as stipulated, the technical and economic analyses pertaining to the development of the Tijirit Gold Deposit.
Algold’s 2019 Tijirit exploration program will focus on increasing the property’s resources base. The Eleonore mineralization is hosted within shallowly plunging, but steeply-dipping, fracture zone. The mining sequence developed in the PEA indicates that by mining the high-grade core of the Eleonore zone at a rate 3,000 t/d for four years, followed by a mill expansion to treat the lower grade Sophie and Lily zones at a rate of 4,500 t/d, the project could present a Pre-tax Net Present Value (“NPV”) of $94.9M at an 8% discount rate with an Internal Rate of Return (“IRR”) of 28.4% and after-tax NPV of $69.0M at an 8% discount rate with an IRR of 23.5%, using a gold price of $1,250 per ounce.
In order to further advance the development of the Tijirit Gold Project, Algold embarked on a Phase IV 25,000-meter drilling program in the summer of 2018. Some 15,000 meters of the drilling were carried out within the optimized pit shell of the PEA, aimed at converting a fair portion of inferred resources into the indicated and measured category. This drilling program delivered strong results (reference Algold’s press releases dated June 21, August 16, August 28, and October 16, 2018).
The Phase IV drilling program further enabled the discovery of the near-surface Salma and Eleonore East high-grade zones, situated less than five kilometers from the Eleonore (“Senso Stricto”) gold zone. Some 8,500 meters of drilling were conducted on this new area, which extends for over ten kilometers along strike.
In late 2018, a soil geochemical survey in the Eleonore East area as well as rock chip sampling in an unexplored zone situated 3.5 kilometers south of Eleonore were performed. Encouraging results from 41 selected grab samples taken from quartz veins, similar to the type of mineralization observed at Eleonore, returned assays values averaging 7.22 g/t Au, with a median value of 0.15 and a range going from 0.004 to 96.5 g/t Au from gold bearing quartz veins. These results continue to demonstrate the fertility of the Tijirit greenstone belt and its potential for further high-grade gold discoveries within Algold’s 300-km2 mining license.
The soil geochemical survey allowed for the definition of several new large gold anomalies. These anomalies will be drill tested in order to develop a strong resource base at Eleonore East and Salma (reference: Figure 1).
Discoveries within these areas have yet to be tested by drilling, but potentially represent further opportunity for Algold to quickly add near-surface resources.
2019 Exploration Overview
As part of the 2019 exploration program, the Corporation intends to promptly resume drilling at Salma and Eleonore East, where numerous high-grade gold intersects have been recorded (reference Algold’s press releases dated September 19 and October 24, 2018).
Algold’s 2019 Tijirit exploration program will focus drilling on increasing the property’s resources base. A structural model of the Eleonore deposit is currently being developed in follow-up to the work done by SRK Consulting in the spring of 2018. The Eleonore mineralization is hosted by a steeply-dipping fracture zone, which intersects a low-angle shear zone, where it develops a sigmoidal structure. At the intersection, significant gold grades are observed. Accordingly, the objective of the 2019 drilling program will be to target these structural intersections along the down dip and sown plunge extension, to a vertical depth of 300 meters.
In parallel to the drilling program, the Corporation intends to conduct other technical studies, including metallurgical and geotechnical analyses, that will contribute to the completion of the feasibility study.
Quality Assurance / Quality Control (QA/QC)
Analytical work for drill core and chips, geochemical samples and rock chip samples is carried out at the independent SGS Laboratories Ltd. in Bamako, Mali. The 50-gram fire assay with ASS finish analytical services are accredited by SANAS and are carried out with a quality assurance protocol in line with ISO 17025:2005. Samples are stored at the Corporation’s field camps and put into sealed bags until delivered by a geologist on behalf of Algold to the laboratory in Bamako, Mali, where samples are prepared and analyzed. Until the end of 2016, samples were analyzed at ALS’s facility in Loughrea, Ireland. As of 2017, samples are analyzed at SGS Laboratory, Bamako. Samples are logged in the tracking system, weighed, dried and finely crushed to better than 70%, passing a two-millimeter (Tyler 9 mesh, US Std. No.10) screen. A split of up to 1,000 grams is taken and pulverized to better than 85%, passing a 75-micron (Tyler 200 mesh) screen, and a 50-gram split is analyzed by fire assay with an AA finish. Anomalous samples greater than 5 g/t Au are re-analyzed by 50-gram fire assay with gravimetric finish. Selected samples may be re-analyzed using a one-kilogram cyanide leach (Bottle Roll) using “LeachWELL” or the one-kilogram screen fire assay method. Blanks, duplicates and certified reference material (standards) are routinely inserted to monitor laboratory performance during the analysis. The independently inserted quality control samples have been reviewed on receipt of the assay results and fall within the acceptable limits as defined by Algold’s Standard Operating Procedure.
This press release has been reviewed for accuracy and compliance under National Instrument 43-101 by André Ciesielski, DSc., Geo., Algold Resources Ltd Lead Consulting Geologist and Qualified Person, and Alastair Gallaugher, C.Geo. (Chartered Geologist and Fellow of the Geological Society of London), BSc. Geology, Algold’s Exploration Manager in Mauritania, Qualified Persons as defined by NI 43−101 Standards of Disclosure for Mineral Projects. André Ciesielski has further approved the scientific and technical disclosure in the news release.
Algold Resources Ltd is focused on the exploration and development of gold deposits in West Africa. The board of directors and management team are seasoned resource industry professionals with extensive experience in the exploration and development of world-class gold projects in Africa.
Algold is developing the Tijirit Gold Project, an area measuring more than 750 km2, which is comprised of the 306-km2 Tijirit Exploitation License and the 460-km2 Tijirit East Exploration License. The Tijirit Gold Project is situated approximately 25 kilometers southeast of the Tasiast gold mine. Exploration is being carried out on the Eleonore, Sophie I, Sophie II-III, Lily and SVS zones.
This press release contains and refers to forward-looking information based on current expectations. All other statements other than statements of historical fact included in this release are forward-looking statements (or forward-looking information). The Corporation's plans involve various estimates and assumptions and its business is subject to various risks and uncertainties. For more details on these estimates, assumptions, risks and uncertainties, see the Corporation's most recent Management Discussion and Analysis on file with the Canadian provincial securities regulatory authorities on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and there can be no assurance that such statements will prove to be accurate. Forward-looking statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements that are included herein, except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Algold Resources Ltd.
1320, boul. Graham, bureau 132, Mont-Royal, Québec, H3P 3C8, www.algold.com
|Benoit LaSalle, FCPA, FCA||Alex Ball|
|Chief Executive Officer||Executive VP, Finance and Corporate Development|
|+1 (514) 951-4411||+1 (647) 919 2227|
|Sample ID||Easting||Northing||Au PPM||Description|
*Previously reported results.