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Roxgold Inc (2)
Symbol ROXG
Shares Issued 373,089,940
Close 2020-12-14 C$ 1.60
Market Cap C$ 596,943,904
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Roxgold releases NI 43-101 estimate on Seguela

2020-12-14 07:40 ET - News Release

Mr. John Dorward reports

ROXGOLD INCREASES INDICATED MINERAL RESOURCES BY 97% TO OVER 1 MILLION OUNCES AT SEGUELA; REPORTS MAIDEN INFERRED MINERAL RESOURCE AT KOULA OF 281,000 OZ AT 8.1 GPT AU

Roxgold Inc. has released an updated mineral resource estimate for the Seguela gold project located in Ivory Coast. The updated Seguela National Instrument 43-101 mineral resource estimate includes an additional 56,600 metres of reverse circulation (RC) and diamond core (DD) drilling since the completion of the Seguela PEA in April, 2020. The drill program prioritized infill drilling of Antenna, Ancien, Boulder and Agouti to increase resource confidence, while rapidly advancing the high-grade Koula discovery to its maiden inferred resource.

Total indicated mineral resources increased 97 per cent to 1,044,000 ounces of gold grading 2.5 grams per tonne since the preliminary economic assessment was released in April, 2020 (refer to company press release dated April 14, 2020). Total inferred mineral resources are estimated at 370,000 ounces at 4.8 grams per tonne, due to the contribution of a maiden mineral resource estimate from the recently discovered high-grade Koula prospect, which returned inferred mineral resources of 281,000 ounces at 8.1 g/t.

Highlights:

  • Total indicated mineral resources: increased by 97 per cent to 1,044,000 oz at 2.5 grams per tonne from 529,000 oz at 2.3 g/t previously;
  • Koula deposit: maiden inferred mineral resource of 281,000 oz at 8.1 g/t;
  • Antenna deposit: increase in indicated mineral resource to 586,000 oz at 2.2 g/t and an inferred mineral resource of 69,000 oz at 1.9 g/t. This compares with the previous estimate carrying an indicated mineral resource of 529,000 oz at 2.3 g/t and inferred mineral resource of 64,000 oz at 2.2 g/t;
  • Ancien deposit: upgraded mineral resource with an initial indicated mineral resource of 250,000 oz at 5.4 g/t and an inferred mineral resource of 11,000 oz at 10.6 g/t. This compares with the previous estimate carrying an inferred mineral resource of 261,000 oz at 6.1 g/t;
  • Agouti deposit: upgraded mineral resource with an initial indicated mineral resource of 111,000 oz at 2.4 g/t and an inferred mineral resource of 6,000 oz at 1.8 g/t. This compares with the previous estimate carrying an inferred mineral resource of 110,000 oz at 2.6 g/t;
  • Boulder deposit: upgraded mineral resource with an initial indicated mineral resource of 97,000 oz at 1.7 g/t and an inferred mineral resource of 3,000 oz at 1.2 g/t. This compares with the previous estimate carrying an inferred mineral resource of 72,000 oz at 1.2 g/t.

"It has been an exceptional year at Seguela as we have continued to demonstrate the potential for the project to grow in quality and scale," stated John Dorward, president and chief executive officer. "The significant increase in indicated mineral resources to over one million ounces provides the foundation for a robust feasibility study, which will also include the very high-grade Koula deposit with a maiden inferred resource of 281,000 ounces at a remarkable 8.1 g/t, giving it the potential to be one of the highest-grade open pits in West Africa. We currently have four rigs at Koula undertaking infill drilling and exploration drilling as the deposit remains open along strike and at depth.

"Since acquiring Seguela in April, 2019, we have seen the project grow at a rapid pace from the 430,000 ounces of inferred mineral resources at acquisition to over a million ounces of indicated and an additional 370,000 ounces of inferred mineral resources today. We continue to believe we have only begun to tap the ultimate potential of the Seguela project and are eager to continue to uncover and test the wealth of additional targets present on the property. While our accomplished exploration team continues their work at Seguela, the critical path for the Seguela project plan is on track with the feasibility study scheduled for the first half of next year, followed soon thereafter by a construction decision towards the goal of achieving first gold pour at Seguela in 2022."

                                SEGUELA NOVEMBER 2020 MINERAL RESOURCE ESTIMATE   
                                    
                            Measured                  Indicated      Measured and indicated                  Inferred
            Tonnes    Grade    Metal  Tonnes    Grade     Metal  Tonnes     Grade     Metal  Tonnes    Grade    Metal
              (kt) (g/t Au) (000 oz)    (kt) (g/t Au)  (000 oz)    (kt)  (g/t Au)  (000 oz)    (kt) (g/t Au) (000 oz)

Antenna          -        -        -   8,180      2.2       586   8,180       2.2       586   1,110      1.9       69
Ancien           -        -        -   1,440      5.4       250   1,440       5.4       250      30     10.6       11
Agouti           -        -        -   1,420      2.4       111   1,420       2.4       111     100      1.8        6
Boulder          -        -        -   1,740      1.7        97   1,740       1.7        97      80      1.2        3
Koula            -        -        -       -        -         -       -         -         -   1,080      8.1      281
Total            -        -        -  12,780      2.5     1,044  12,780       2.5     1,044   2,400      4.8      370

Notes
(1) Mineral resources are reported in accordance with NI 43-101 with an effective date of Nov. 30, 2020, for the 
Seguela gold project.
(2) The Seguela mineral resources are reported on a 100-per-cent basis at a gold grade cut-off of 0.3 g/t Au for 
the Antenna deposit and 0.5 g/t Au for the satellite deposits, based on a gold price of $1,700 (U.S.)/ounce and 
constrained to an MII pit optimization shell.
(3) The identified mineral resources are classified according to the CIM (Canadian Institute of Mining, Metallurgy 
and Petroleum) definitions for the measured, indicated and inferred categories. The mineral resources are reported 
in situ without modifying factors applied.
(4) The Seguela mineral resource statement was prepared under the supervision of Hans Andersen, senior resource 
geologist at Roxgold. Mr. Andersen is a qualified person as defined in NI 43-101.
(5) All figures have been rounded to reflect the relative accuracy of the estimates and totals may not add due to 
rounding.
(6) Mineral resources that are not mineral reserves and do not necessarily demonstrate economic viability.
(7) Mineral resources are reported inclusive of mineral reserves.
(8) The Seguela gold project is subject to a 10-per-cent carried interest held by the government of Ivory Coast.

The resource estimate announced today is an update from the resource estimate used in the PEA disclosed by the company on April 14, 2020. In the proposed mine plan outlined in the PEA, a total of 890,000 ounces from all resource categories are mined from the Antenna, Ancien, Boulder and Agouti deposits. The updated resource estimate does not affect the validity or currency of the PEA. With the increase in indicated mineral resources from Antenna, Ancien, Boulder and Agouti and the maiden inferred mineral resource at Koula, Roxgold believes there is the potential for increased mine life at Seguela and higher potential future production, which will be assessed in future studies.

Indicated mineral resources increased 97 per cent to 1,044,000 oz Au from 529,000 oz Au relative to the April 14, 2020, estimate (refer to company press release dated April 14, 2020). Inferred mineral resource decreased by 27 per cent to 370,000 oz Au from 508,000 oz Au relative to the April 14, 2020, estimate reflecting the conversion of prior inferred mineral resources to indicated mineral resources and the addition of the new high-grade Koula deposit.

The mineral resources and mineral reserves models were prepared in conformity with the Canadian Institute of Mining, Metallurgy and Petroleum's Estimation of Mineral Resources and Mineral Reserves Best Practices Guidelines (November, 2019) and are classified per the CIM Definition Standards for Mineral Resources and Mineral Reserves (May, 2014).

                          SEGUELA MINERAL RESOURCE COMPARISON (1) (2)
   
                          Prior as at April 14, 2020 (3)            Updated as at Nov. 30, 2020 
                        Tonnes        Grade        Metal       Tonnes        Grade        Metal
                          (kt)     (g/t Au)     (000 oz)         (kt)     (g/t Au)     (000 oz)
Mineral resource
Measured                     -            -            -            -            -            -
Indicated                7,100          2.3          529       12,780          2.5        1,044
Measured and
indicated                7,100          2.3          529       12,780          2.5        1,044
Inferred                 5,400          2.9          508        2,400          4.8          370

Notes
(1) Mineral resources are reported in accordance with NI 43-101.
(2) All figures have been rounded to reflect the relative accuracy of the estimates and totals 
may not add due to rounding.
(3) Refer to SEDAR for NI 43-101 technical report titled "Seguela Project Preliminary Economic 
Assessment, Worodougou Region, Cote d'Ivoire" effective date of April 14, 2020.

Koula

Located approximately one km to the east of Antenna, Koula was discovered through field reconnaissance and coincident recent artisanal workings in an area previously considered to be a lower exploration priority. An initial 10-hole reconnaissance RC drill program successfully returned intersections of high-grade mineralization extending over a projected strike of more than 300 metres across five drill lines, with the deepest intersection approximately 150 metres below surface. This program was extended with 10 lines of drilling infilling and extending coverage to over 400 m of strike and where the high-grade mineralization remains open at depth.

Mineralization is hosted by quartz-carbonate veining associated with a well-developed mylonitic fabric within and along the interpreted margins of a tholeiitic basalt, which in turn has been tightly folded. Coarse gold is commonly recorded in the higher-grade zones, with drilling highlighting a consistent moderate southerly plunge to the high-grade core over at least 450 m, and where it remains open to the south.

With four drill rigs operating at Koula, an infill program of RC and diamond drilling to 50 m centres is continuing to support the rapid advancement of Koula to indicated status and inclusion in the upcoming feasibility study. Recent high-grade results from the conclusion of the inferred drilling program include:

  • 22 metres at 16.4 grams per tonne gold in drill hole SGRC928 from 131 m including:
    • Two m at 52.7 g/t Au from 135 m;
    • Four m at 53.0 g/t Au from 138 m;
  • 14 m at 14.6 g/t Au in drill hole SGRC968 from 40 m including:
    • One m at 24.9 g/t Au from 40 m;
    • Five m at 31.4 g/t Au from 44 m;
  • 18 m at 9.5 g/t Au in drill hole SGRC965 from 21 m including:
    • Four m at 32.7 g/t Au from 26 m;
  • 19 m at 3.4 g/t Au in drill hole SGRD962 from 236 m including:
    • Four m at 32.7 g/t Au from 26 m;
  • Nine m at 4.8 g/t Au in drill hole SGRD955 from 246 m including:
    • One m at 16.7 g/t Au from 252 m.

All results are reported as downhole intervals, which represent approximately 60 per cent of true width.

Seguela regional reconnaissance

Scout RC drilling has recently been completed at Winy and will progressively work across the high-priority Seguela prospects. This testwork program is following up on the mapping and reconnaissance sampling at Seguela, which continue to emphasize the regional prospectivity of the property package with several prospects identified where rock chip samples recorded several instances of visible gold. In addition to continuing detailed field mapping, auger drilling is under way targeting the southern extensions of key favourable structural corridors that host the Antenna, Ancien-Boulder-Agouti and Elephant-Winy mineralization. Follow-up scout RC drilling is planned in early 2021 across these prospects.

Mineral resource modelling and estimation assumptions

The mineral resources reported herein have been estimated using a geostatistical block modelling approach informed from gold assay data collected from RC and DD drill holes. Technical work for the construction of the Seguela mineral resource, including wireframing, statistical and geostatistical analysis, and mineral resource estimation, was conducted, and/or supervised by Mr. Andersen of Roxgold and reviewed by Paul Weedon, vice-president of exploration for Roxgold.

The mineral resource estimate incorporates all drilling data (RC and DD), comprising 820 drill holes for a total of 110,936 metres targeting the Antenna, Agouti, Ancien, Boulder and Koula deposits.

The Koula, Ancien, Agouti and Boulder mineral resource models were developed using Leapfrog Geo and Micromine software. Antenna's mineral resource model was developed using Geovia's Surpac software. All gold assays from drill holes were composited to 1.0-metre intervals within the mineralized wireframes at Antenna, Agouti, Ancien, Boulder and Koula. Top cuts were applied to individual domains based on the analysis of gold grade outliers within the statistical data populations and ranged between 1.5 g/t to 80.0 g/t Au.

The mineral resource model gold grades were estimated using a combination of ordinary kriging and inverse distance methods using a multiple pass approach to inform the resource model. The grade estimates are validated visually by sectional comparison and through statistical approaches that encompass traditional validation methods, such as swath plots comparing composite and block model values for each deposit. Geostatistical exploratory data analysis (EDA), variogram modelling and mineral resource model validation were conducted using Snowden Supervisor software.

Density values were assigned to the mineral resource models based on ascribed oxidization state and lithological unit, with mineralization being assigned the density of its predominant host. A density of 1.2 to 1.8 tonnes per cubic metre was assigned to transported and alluvial sediments, with a range of 1.8 to 2.2 tonnes per cubic metre assigned to the oxidized weathered profile and a range of 2.67 to 3.20 tonnes per cubic metre assigned to fresh rock lithologies.

Resource models and drill hole data at the Seguela gold project utilize the WGS84 (zone 29N) co-ordinate system.

The mineral resource models are classified into measured, indicated and inferred categories based on analysis of the following criteria: number of samples informing the estimate, sample spacing, average sample distance, kriging efficiency and slope of regression outputs, drill hole and sample quality assurance/quality control thresholds and geological confidence in modelled interpretations, and grade continuity and level of geological understanding at each deposit.

The Seguela mineral resources were reported constrained by preliminary pit optimizations generated in Micromine to satisfy the definition of mineral resources having reasonable prospects for eventual economic extraction (RPEEE), and are based on the following parameters:

  • Gold price of $1,700 (U.S.)/oz;
  • Mining recovery of 90 per cent and mining dilution of 10 per cent;
  • Processing recovery of 94.5 per cent;
  • Overall slope angle of 52 degrees to 58 degrees for Antenna, 54 degrees for Agouti, 55 degrees for Ancien, 55 degrees for Koula and 57 degrees for Boulder;
  • Mining costs of $1.97 (U.S.) per tonne for Antenna and $2.28 (U.S.) per tonne for the satellite deposits;
  • Total processing costs (including G&A) of $21.64 (U.S.) per tonne;
  • Total selling costs (includes state and third party royalties) of $121.60 (U.S.)/oz

                               UPCOMING CATALYSTS
Event                                                                        Timing
Continuing infill, expansion and satellite
target drilling program at Seguela                                          Q1 2021
Drilling results from Boussoura                                             Q1 2021
Underground drilling program in 55 zone at Yaramoko mine complex            Q1 2021
Feasibility study for Seguela                                               H1 2021
Formal Seguela construction decision                                        H1 2021
Initial resource at Boussoura                                               H2 2021
Commissioning of Seguela gold project                                          2022

Qualified persons

Mr. Weedon, a member of the Australian Institute of Geoscientists MAIG (No. 6001), a qualified person within the meaning of National Instrument 43-101, has reviewed, verified and approved the scientific and technical disclosure contained in this news release. This includes the QA/QC, sampling, analytical and test data underlying this information. No limits were imposed on Mr. Weedon's verification process.

The scientific and technical information contained in this document relating to the Seguela mineral resource is based on, and fairly represents, information compiled by Mr. Andersen. Mr. Andersen, MAIG (No. 5746), is a member of the Australian Institute of Geoscientists. Mr. Andersen is a full-time employee of Roxgold and is not independent within the meaning of NI 43-101 Standards of Disclosure for Mineral Projects. Mr. Andersen has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity, which he is undertaking to qualify as a qualified person under NI 43-101. Mr. Andersen has consented to and approved the inclusion in this document of the matters based on his compiled information in the form and context in which it appears in this document.

Roxgold's disclosure of mineral reserve and mineral resource information is governed by NI 43-101 and under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Mineral Reserves, adopted by the CIM council, as may be amended from time to time by the CIM. There can be no assurance that those portions of mineral resources that are not mineral reserves will ultimately be converted into mineral reserves.

For more information on the projects you can also refer to the company's technical reports entitled "Technical Report for the Yaramoko Gold Mine, Burkina Faso," dated Dec. 20, 2017, and "NI 43-101 Technical Report, Seguela Project, Preliminary Economic Assessment, Worodougou Region, Cote d'Ivoire," dated April 14, 2020, each available on the company's website and SEDAR.

Quality assurance/quality control

All drilling data completed by Roxgold utilized the following procedures and methodologies. All drilling was carried out under the supervision of Roxgold personnel.

RC drilling used a 5.25-inch face sampling pneumatic hammer with samples collected into 60-litre plastic bags. Samples were kept dry by maintaining enough air pressure to exclude groundwater inflow. If water ingress exceeded the air pressure, RC drilling was stopped and drilling converted to diamond core tails. Aircore (AC) drilling was collected in one-metre intervals and sampled in a similar fashion to RC methods. Once collected, RC and AC samples were riffle split through a three-tier splitter to yield a 12.5-per-cent representative sample for submission to the analytical laboratory. The residual 87.5 per cent samples were stored at the drill site until assay results were received and validated. Coarse reject samples for all mineralized samples corresponding to significant intervals are retained and stored on site at the company-controlled core yard.

Diamond drill holes were drilled with HQ-sized diamond drill bits. The core was logged and marked up for sampling using standard lengths of one metre. Samples were then cut into equal halves using a diamond saw. One-half of the core was left in the original core box and stored in a secure location at the company core yard at Seguela. The other half was sampled, catalogued and placed into sealed bags and then securely stored at the site until shipment.

All Seguela RC, AC and DD core samples were shipped to ALS preparation laboratory in Yamoussoukro for preparation. ALS is independent of Roxgold. Samples were dried and crushed by the laboratory and a 250-gram split prepared from the coarse crushed material, prior to pulverization and preparation of a 200 g sample. Samples are then shipped via commercial courier to ALS's analytical facility in Ouagadougou, Burkina Faso, where routine gold analysis using a 50-gram charge and fire assay with an atomic absorption finish was completed. Quality control procedures included the systematic insertion of blanks, duplicates and sample standards into the sample stream. In addition, the laboratory inserted its own quality control samples.

About Roxgold Inc.

Roxgold is a Canada-based gold mining company with assets located in West Africa. The company owns and operates the high-grade Yaramoko gold mine located on the Hounde greenstone belt in Burkina Faso and is advancing the development and exploration of the Seguela gold project located in Ivory Coast.

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