This junior explorer reported a new gold find in West Africa; shares shoot up 30pc
Mining & Resources
Mining & Resources
A map of the African nation of Burkina Faso outlined in gold. Pic: Getty
Mako Gold has made a new gold discovery in Burkina Faso, notching hits of up to 53.8g/t.
The news sent Mako (ASX:MKG) shares up over 30 per cent to an intra-day peak of 15c just after market open on Tuesday.
Burkina Faso has proven very lucrative for junior Aussie explorers.
West African Resources (ASX:WAF), for example, has made several reports of “bonanza” grades of gold of up to as high as 860g/t from its Sanbrado project.
There is no agreed-upon, official definition for “bonanza” grade – but anything over 5g/t gold is considered high-grade.
Africa’s El Dorado
Burkina Faso is Africa’s third largest exploration jurisdiction for gold and the continent’s fourth largest producer.
Mako made its new gold discovery during maiden drilling at its Niou project.
“The repeated wide mineralized gold intersections along with high-grade results is extremely encouraging and will warrant follow-up drilling,” managing director Peter Ledwidge told investors today.
Mr Ledwidge and wife Ann have notched up considerable success in West African gold over the years.
READ: Stockhead columnist Barry Fitzgerald’s Husband and wife team out to repeat success with $6m Mako IPO
Despite that, Mako’s shares had been trading at almost half the company’s 20c issue price since listing on the ASX in April.
‘Bonanza’ grade silver in South Korea
Meanwhile, Southern Gold (ASX:SAU) has reported what would be called a “bonanza” hit of up to 1350 grams per tonne (g/t) of silver from its Weolyu South project in South Korea.
‘Bonanza’ is not an official grading for silver either, but anything over 50g/t silver is considered high-grade.
Southern Gold also reported high-grade gold of up to 32.8g/t.
The high grades were uncovered during underground channel sampling. Re-testing of the Weolyu samples delivered a 30 per cent increase in previously reported grades, Southern Gold said.
Managing director Simon Mitchell said Weolyu was Southern Gold’s “premier exploration target” with its very high-grade gold and silver tenor.
“This underground channel sampling is on only one vein system while we have identified multiple epithermal quartz veins on surface, most of which remain untested by drilling,” he said.
Southern Gold is now planning to drill the down plunge extension of the “very high-grade gold-silver system” and the other untested epithermal quartz vein systems this year.