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Roxgold Inc (2)
Symbol ROXG
Shares Issued 370,029,295
Close 2019-07-15 C$ 1.07
Recent Sedar Documents

Roxgold drills 26 m of 4.46 g/t Au at Seguela

2019-07-15 09:07 ET - News Release

Mr. John Dorward reports

ROXGOLD ANNOUNCES HIGH GRADE DRILLING RESULTS FROM THE SEGUELA GOLD PROJECT

Roxgold Inc. has released drilling results from the company's Seguela gold project, located in Ivory Coast. The company has provided an exploration update from its Yaramoko gold mine, located in Burkina Faso.

Highlights:

  • Maiden National Instrument 43-101 indicated resource of 496,000 ounces at 2.4 grams per tonne gold and an inferred resource of 34,000 ounces at 2.4 g/t Au for the Antenna deposit at the Seguela gold project in Ivory Coast, announced on July 11, 2019;
  • Extension and infill drilling at the Antenna deposit subsequent to the completion of the mineral resource estimate returned:
    • 5.4 g/t Au over 21 metres in reverse circulation hole SGRC222;
    • 5.2 g/t Au over 37 m in RC hole SGRC223;
    • 3.3 g/t Au over 11 m in RC hole SGRC198;
    • 1.8 g/t Au over 30 m in diamond drill hole SGRD202.
  • High-grade results over wide intervals were received from drilling at Boulder, the first satellite target at Seguela, including:
    • 3.03 g/t Au over 11 m, including 9.19 g/t Au over three m, from RC hole SGRC207;
    • 1.71 g/t Au over 19 m in RC hole SGRC211.
  • RC, diamond and air core drilling under way at the Agouti and Kwenko West targets at Seguela;
  • Large airborne geophysical program due to start in August.

"The recent release of the maiden NI 43-101 mineral resource estimate for the Antenna deposit has highlighted the robust nature of the deposit and its potential amenability for open-pit mining, while the preliminary results from Boulder demonstrate the potential for satellite pits along the main structures. This is the first of several prospects that will be drilled in the coming months, positioning the company for further strong development," commented John Dorward, president and chief executive officer.

"The high-quality dataset acquired from Newcrest allowed us to fast-track the maiden NI 43-101 mineral resource estimate, including an indicated resource of 496,000 ounces for the Antenna deposit, while also allowing us to accelerate exploration at Boulder, Kwenko West and Agouti," commented Paul Weedon, vice-president, exploration. "Additional infill and extension drilling at Antenna subsequent to the completion of the maiden mineral resource estimate is anticipated to add to the resource, while results from Boulder highlight the potential of the satellite prospects. With work at Seguela the priority in the second half of 2019, we will also commence exploration activities in the highly prospective regional permits, following up on the extensive stream sediment and termite mound anomalies generated during previous early-stage reconnaissance work."

Ivory Coast

Antenna

Fifteen RC and diamond holes (3,782 m) have been completed since the acquisition of the Seguela project on April 18, 2019. These holes are in addition to the data used in the preparation of the maiden Seguela NI 43-101 mineral resource for the Antenna deposit. This drilling was designed to test extensions that were identified during the resource modelling process as having potential for additional mineralization.

Drilling results received to date include:

  • 4.46 g/t Au over 26 m in DD hole SGDD041 from three m;
  • 1.42 g/t Au over 12 m in RC hole SGRC194 from 18 m;
  • 1.41 g/t Au over 12 m in RC hole SGRC195 from zero m;
  • 1.0 g/t Au over 13 m in RC hole SGRC196 from zero m;
  • 1.25 g/t Au over 16 m in RD hole SGRD197 from 34 m;
  • 3.29 g/t Au over 11 m in RC hole SGRC198 from zero m;
  • 1.31 g/t Au over 19 m in RC hole SGRC200 from seven m;
  • 1.69 g/t Au over 28 m in RC hole SGRC201 from zero m;
  • 1.76 g/t Au over 30 m in RD hole SGRD202 from 108 m, including 8.61 g/t Au over four m from 109 m;
  • 5.4 g/t Au over 21 m in RC hole SGRC222 from 50 m;
  • 5.2 g/t Au over 37 m in RC hole SGRC223 from 29 m.

These results have further confirmed the broad and continuous nature of the Antenna mineralization, as well as its near-surface proximity with several intervals starting from surface. Mineralization is preferentially associated with a rhyolitic porphyry and a series of north-south-striking faults, bounded by volcaniclastics and mafic units in the footwall as well as ultramafic units in the hangingwall, and associated with sericite-quartz-pyrite alteration and quartz veining.

All results will be incorporated into the forthcoming preliminary economic assessment and an upgraded resource estimate, anticipated for release in the fourth quarter of 2019.

Seguela satellite prospects

Boulder

Five RC and diamond holes (726 m) were drilled at the nearby Boulder prospect to follow up on previous Newcrest Ltd. high-grade air core drilling and wide-spaced diamond drilling results along a 750 m strike length. Previous drilling identified high-grade mineralization associated with a series of northeast-trending, shear-controlled quartz veins along the contact of a rhyolite/mafic unit. Recent drilling has highlighted the strong structural and lithological controls on the mineralization, with results including:

  • 2.59 g/t Au over six m in DD hole SGDD042 from 100 m;
  • 3.03 g/t Au over 11 m in RC hole SGRC207 from 91 m, including 9.19 g/t Au over three m from 96 m;
  • 1.71 g/t Au over 19 m in RC hole SGRC211 from 58 m, including 4.19 g/t Au over five m from 58 m and 2.03 g/t Au over five m from 70 m.

These recent results are in addition to high-grade results previously drilled by Newcrest, including:

  • 16.9 g/t Au over nine m in SGRD162 from 145 m;
  • 9.1 g/t Au over seven m in SGRC161 from 18 m.

These recent results are encouraging and will assist the company's emerging regional understanding and the drilling planned for Agouti, located approximately 1.5 kilometres along strike to the north on the same interpreted structure.

Kwenko West

Air core drilling is also under way at the Kwenko West prospect, testing a series of soil anomalies along a 2.5 km zone associated with granite-mafic contact, which has been the subject of artisanal workings in the past. Drilling has been completed along four of the nine lines, with results received from the first two (northernmost) lines highlighting a 150 m wide by greater than 400 m strike stockwork zone of fine quartz plus pyrite veins within the granite, extending over lines 8 and 9. This remains open along strike to the northeast and the southwest.

Agouti

Preparation for drilling at Agouti is well advanced, with drilling scheduled to start in mid-July, 2019, following up on previous Newcrest drilling results, including:

  • 20.4 g/t Au over five m in RC hole SGRC152 from 44 m;
  • 16.5 g/t Au over four m in RC hole SGRC185 from 125 m;
  • 5.1 g/t Au over 11 m in RC hole SGRC187 from 21 m (including 13.7 g/t Au over four m from 39 m);
  • 4.2 g/t Au over eight m from 14 m.

Other satellite prospects

Target ranking is under way to prioritize the other Seguela satellite prospects that are primarily within 10 km of Antenna and where a significant amount of previous work has highlighted the regional prospectivity. This includes four recent rock chip samples at P3, which returned grades between 10.8 g/t Au to 40.0 g/t Au from a zone of outcrop and artisanal workings. These targets will be tested further in the second half of 2019.

Regional

An airborne geophysics program is planned for August to: (i) improve the understanding of the key controlling structures and geology on five of the permits (including Seguela); and (ii) assist with refining target generation. Previous early-stage reconnaissance work by Newcrest on these regional permits highlighted several broad stream sediment and termite mound anomalies extending over several kilometers at Dianra (14 km strike length) and Bouake (9.5 km strike length), and the program has been extended to cover the recently granted Kadyoha permits.

Burkina Faso

55 zone

A detailed review of the key structural controls, geostatistical and grade control mapping data as part of the recently released mineral resource statement has led to an improved understanding of the orientation of the high-grade ore shoots at the 55 zone. Previously, these were interpreted as being steeply plunging at approximately 70 degrees to 75 degrees toward the east within the overall shear zone. Recent mapping work and geostatistical work have highlighted a slightly flatter plunge at 55 degrees to 65 degrees to the east, still within the overall shear zone.

The results of this review are being incorporated into the early-stage planning for the next phase of deep infill drilling scheduled for the second half of next year. A dedicated drill platform is planned to be developed at approximately the 4700L level, approximately 650 metres below surface, to support the next resource infill and extension program.

Yaramoko regional exploration

During the second quarter of 2019, exploration activities focused mainly on extending soil auger grids to the south along the Yaramoko structure as well as to the north at San and zone 300, where interpreted granite contacts are coincident with historic soil anomalism. Scout RC drilling and diamond drilling were also carried out at selected coincident geophysical and geochemical targets at Kaho, Haho and the Boni shear, returning numerous intervals of shearing with quartz veining, alteration and associated pyrite, supporting the overall regional structural interpretation associated with the Yaramoko and Bagassi South mineralization.

Work has commenced on reviewing and refining the regional lithogeochemical model using the large amount of data generated over recent years, including: detailed mapping of underground workings; extensive regional auger drilling; scout RC and diamond drilling; and work on pathfinder geochemistry. The results of this review will be used to prioritize targets for the 2019/2020 exploration season.

Upcoming catalysts:

  • Q3 -- Seguela development update;
  • Q3 -- further exploration results from Seguela;
  • Q4 -- Yaramoko regional exploration results;
  • Q4 -- results of Seguela preliminary economic assessment.

Qualified person

Paul Weedon, MAIG, vice-president, exploration, of Roxgold, a qualified person within the meaning of NI 43-101, has verified and approved the technical disclosure contained in this news release. This includes the quality assurance/quality control, sampling, analytical and test data underlying this information. For more information on the company's quality assurance/quality control and sampling procedures, please refer to the company's annual information form dated Dec. 31, 2018, which is available at the company's website and on SEDAR.

Quality assurance/quality control

Yaramoko

The holes were drilled with NQ2-sized diamond drill bits for drill holes reported in this press release. Company personnel are located at the drill site. Employees of Roxgold conducted all logging and sampling. The core was logged, marked up for sampling using standard lengths of two m outside of the zone and adjusted to lithological contacts up to one metre within the zone. 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 Roxgold camp within the Yaramoko area. The other half was sampled, catalogued and placed into sealed bags and securely stored at the site until it was shipped to Activation Laboratories, located in Ouagadougou. The core was dried and crushed by the lab and a 150-gram pulp was prepared from the coarse crushed material. The lab then conducted routine gold analysis using a 50-gram charge and fire assay with an atomic absorption finish. Samples returning over 5.0 g/t were also analyzed by gravimetric analysis. Quality control procedures included the systematic insertion of blanks, duplicates and sample standards into the sample stream. In addition, the lab inserted its own quality control samples.

Seguela

All drilling data completed by Newcrest prior to the acquisition by Roxgold Ltd., and subsequently by Roxgold Ltd., have utilized the following procedures and methodologies. All drilling was carried out under the supervision of Newcrest or 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. Once collected, RC 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 sample was 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 NQ2-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's core yard at Seguela. The other half was sampled, catalogued and placed into sealed bags and securely stored at the site until shipment.

All RC and diamond core samples were shipped to ALS Laboratories' preparation laboratory in Yamassoukro for preparation. Samples were dried and crushed by the lab, and a 250-gram split was prepared from the coarse crushed material, prior to pulverization and preparation of a 200-gram sample. Samples were then shipped via commercial courier to ALS's analytical facility in Kumasi, Ghana, 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 lab inserted its own quality control samples.

About Roxgold Inc.

Roxgold is a Canadian-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 also advancing the development and exploration of the Seguela gold project, located in Ivory Coast.

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