Gold: African Gold says Agboville could host a 'very large system'

African Gold (ASX:A1G) exploded out of the blocks on its February ASX debut when the share price doubled in the first eight minutes.

The explorer has since fallen back to about 17c per share, but success at its prospective early stage projects in West Africa could change that pretty quickly.

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Today, the explorer released some promising early stage drilling results from the Agboville project in Cote D’Ivoire which indicate the presence of a “large gold system”.

It’s the sort of thing investors like to hear.

A very shallow 6000 metre, 174-hole drilling program along a ~20km northeast trending gold-in-soil anomaly known as the Tyche Prospect was “encouraging”, the company says.

It confirmed a bedrock source to the gold-in-soil anomaly, with 65 per cent of the holes retuning anomalous intercepts and 41 per cent of holes returning intercepts of more than 0.1 g/t gold.

Best hits included 9m at 1.24 g/t gold, including 1m at 4g/t from surface.

And this is the first ever drilling program conducted on the property which make the results even more significant, the company says.

It’s very early days here, but these sorts of campaigns are important if African Gold is to dial in on the most prospective parts of this massive system for deeper follow-up drilling.

The company says mapping, trenching, pitting, soil sampling and follow-up drilling will begin this quarter.

In other ASX gold news today:

A $9m placement will fund resource growth and a definitive feasibility study at Calidus Resources’ (ASX:CAI) 1.25moz Warrawoona gold project in WA. The 3.2c issue price represented a 17.9 per cent discount to Calidus’ last close. Existing shareholder Alkane Resources (ASX: ALK) subscribed for shares worth ~$1.2m, which Calidus called a “strong endorsement” of its strategy.

“The equity raising follows the release of an outstanding PFS which shows the Warrawoona gold project in WA’s Pilbara will be a robust operation with strong financial returns,” Calidus managing director Dave Reeves says. “Calidus is now well positioned to fund the next stage of growth through continued exploration success and project development at Warrawoona.”