Roxgold Inc. (TSX VENTURE: ROG) announces that it has completed Phase 1 exploration activities on the Yaramoko Concession and reverse circulation drilling is now underway on the Bissa West Concession.
These concessions are located in Burkina Faso, West Africa and together with the Solna Concession, are the subject of an option agreement with Riverstone Resources Inc. ("Riverstone"). Work completed to date at Yaramoko includes 2723 meters of reverse circulation drilling in 33 holes, grid-based soil and rock sampling programs and coverage of the entire concession with an airborne magnetic and radiometric survey.
Drilling was directed to follow up historic gold intercepts including YRM-07-RC-022: 11.88 grams per tonne (gpt) gold over six meters ;YRM-07-RC-017: 14.82 gpt gold over two meters and YRM-07-RC-015: 2.04 gpt gold over 14 meters as well as untested soil and rock sample anomalies generated in 2007 and in October 2010. While drilling one such soil anomaly in the Central Bagassi area of the Yaramoko Concession, the site became the focus of artisanal mining activity with several hundred local miners commencing small scale pitting on the target zone.
The Yaramoko permit is south of and contiguous to Semafo's Mana gold mine where gold is being produced from a series of high-grade gold veins, similar to those at Yaramoko. Semafo recently announced that it was planning to invest an additional $25 million to further expand operations at this mine.
The reverse circulation drill has moved to the Bissa West concession in central Burkina Faso (rock samples up to 19 gpt gold and widespread artisanal workings) and several holes have now been completed on the Pelgtanga gold targets.
As noted in the Company's press release of December 1, 2011 the Company intends to drill approximately 2500 meters on each of the three properties (Yaramoko, Bissa West and Solna) using a reverse circulation drill to test anomalous zones along known gold bearing structures . After completion of the ongoing drilling at Bissa West, the exploration focus will shift to the Solna Concession (trench results include 7.34 gpt gold ore 7.5 meters).
Samples taken have been submitted to ALS Chemex for gold assaying and results will be released when received. In addition to the normal gold assaying procedures for each drill sample submitted, all 2 meter drill samples in which visible gold was noted after panning (approximately 40), were assayed for gold using a 2 kg sample and cyanide leaching.
"We are very encouraged by our exploration work to date," commented Bob Sibthorpe President and CEO of Roxgold. "The combination of seeing varying levels of gold in the panning of about 40 samples, together with aggressive artisanal mining by locals clearly indicates there is significant gold on the Yaramoko Concession. We are awaiting assay results which will give us a better determination of the grades and widths of this gold mineralization and also allow us to prepare a follow up program in the spring which will include diamond drilling."
The option agreement with Riverstone is structured as three separate option agreements each option agreement requiring a total cash payments of $100,000, issuance of 360,000 shares and complete work totalling $1,500,000 per property over three years or two years in the case of Bissa West. Hence to earn a 60% interest in all three properties, Roxgold must make cumulative share issuances of 600,000 shares upon the closing of the transaction (issued); Year 1: cash payments totalling $150,000, issue 180,000 shares and complete $1,050,000 in work commitments; Year 2: $120,000 in cash payments, issue 300,000 shares and complete $2,150,000 in work commitments; Year 3: $1,300,000 in work commitments. A 43-101 report on all three properties has been filed. Exploration activities will commence forthwith. The Company may elect to drop one or more of the properties (and accordingly terminate its obligations in respect of such properties) without affecting its rights or obligations in the other property or properties.
Paul G. Anderson, P. Geo. is a Qualified Person for Riverstone and has reviewed and approved the contents of this release.
Source: Roxgold Inc.