Compass Gold Corporation (TSX VENTURE:CVB) provides the following update regarding its exploration activities in Mali, West Africa, relating to three exploration gold research permits held by Africa Mining SARL.
Highlights:
- Fieldwork started on Dandoko license and resumed on Yanfolila license
- Scout auger drilling in progress at Yanfolila anomaly
- Field mapping in progress at Solona and Yanfolila anomalies
- 2,000m RC drilling program due to commence in March 2011 on Yanfolila and Solona targets
Following the completion of a successful first phase exploration program in early 2010 (see Compass news release dated September 30, 2010) Compass resumed fieldwork on the Africa Mining properties in early November 2010. Details of the work being undertaken are as follows:
Yanfolila License
On the Yanfolila license Compass has commenced follow up exploration work on the Solona and Yanfolila gold anomalies. These anomalies, with strike lengths ranging from 2000m's to 4,000m's will be assessed by detailed field mapping and verification of location of samples with high gold values. In addition a 30-hole scout auger drilling program is being conducted on the Yanfolila gold anomaly, with the aim of defining the bedrock geochemistry to 21m at this particular anomaly.
Fieldwork being conducted on Yanfolila targets will lead to a 2,000m RC drilling program expected to start in March 2011. The commencement date will depend on the availability of a drill rig and the Company is in the process of securing this. The cost of this initial drill program is included in the current C$1,500,000 exploration program. The aim of this drill program is to intersect gold mineralization at depth, in hard rock. Depending on the results, it is likely further drilling and exploration work will need to be conducted before the Company will be able to define a resource.
The above work will be completed in combination with license wide geological and geomorphological mapping. This mapping program will allow a definition of gold target for future systematic geochemical sampling.
Kolondieba License
Work on the Kolondieba license has been delayed due to poor accessibility after the rainy season. Field work will resume in January 2011 and a program including trenching and auger drilling should lead to an RC drilling program in late 2011.
Dandoko License
Field work on the Dandoko license has started with geological/geomorphologic mapping and assessment of previous work being conducted on the area. The objective of this field work is to assess known gold occurrences and define potential gold targets for future systematic geochemical sampling. The Company expects this program will define targets to enable a scouting drilling program to be completed during 2011.
2010-11 Phase 2 Exploration Program
The 2010-11 phase 2 exploration program on Africa Mining's mineral exploration permits will have three main objectives:
- Bring the Solona and Yanfolila gold anomalies on the Yanfolila license to a drilling stage and commence an initial 2,000m RC drill program during the first quarter 2011.
- Conduct regional and semi-regional work on the Kolondieba and Dandoko licenses in order to define targets that can be drilled in late 2011.
This program will include geological mapping and geochemical surveys at different scale, reinterpretation of all available data and its integration with newly collected and to be collected data, trenching and drilling. It is anticipated that a total budget of C$4m to C$5m will be necessary to define mineral resources on the best targets. Neither Africa Mining nor Compass Gold has committed this expenditure and future expenditure requirements will depend on the results of the current exploration program.
Compass expects the balance of any required funding for the current C$1,500,000 exploration program to come from available loan facilities and a future private placement.
Dr. Madani Diallo, a director of the Company and a Qualified Person pursuant to National Instrument 43-101, takes responsibility for the technical information contained in this release.
Compass also confirms the formalities associated with the exercise of the option for Compass Gold to acquire an initial 20% interest in Africa Mining have now been completed.
General exploration activities in Mali
Mali is the third largest gold producer in Africa with five producing gold mines. The Birimian gold belt in west and south Mali is a highly prospective gold exploration area which is experiencing growing exploration activity. Mali continues to be a targeted gold exploration location attracting increasing investment from Canadian, Australian and South African companies. Chinese and Indian companies are also increasing their activity directly through license applications and the acquisition of Malian companies. Most companies resumed exploration activities during October and November 2010, after the rainy season. Competition for prospective ground is increasing and the Malian Government is supporting these activities with approximately 40 new exploration licenses approved during November.
Source: Compass Gold Corporation