Why not both? Looks like Golden Rim’s gold project could be large AND high grade
Link copied to
The share price of African gold explorer Golden Rim is at its highest level since September last year, after fresh high-grade gold was unearthed right next to an existing 1.4moz ounce resource.
Golden Rim’s (ASX: GMR) share price tore up 30 per cent to 2.3c on the announcement, which helps pare some of its losses over the past year.
Drilling at the flagship Kouri project in Burkina Faso hit high grade gold – including 4 metres at 44.7 grams per tonne 34 metres from surface – right next to the 1.4moz mineral resource.
In a September 2018 note, Perth broker Hartley said Golden Rim needed to define either a large deposit (2 million ounce plus) or a relatively high-grade deposit (2 grams per tonne plus in an open cut), “to reward shareholders for the higher risk of operating in West Africa”.
“Golden Rim has the potential to achieve one if not both, given that the current resource is 1m oz grading 1.5g/t with numerous lodes yet to be included in the resource.”
The explorer also said the magnetic anomaly associated with the gold hits extended for more than 5km within the Kouri tenement — and then continued for at least another 5km into two new areas it’s in the process of acquiring.
The explorer has previously said it wants to update the mineral resource and kick off a scoping study into the project this year.