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Roxgold Inc (2)
Symbol ROXG
Shares Issued 371,562,306
Close 2020-01-28 C$ 0.85
Recent Sedar Documents

Roxgold increases NI 43-101 resources at Seguela

2020-01-29 06:07 ET - News Release

Mr. John Dorward reports

ROXGOLD ANNOUNCES A SIGNIFICANT INCREASE IN MINERAL RESOURCES AT THE SEGUELA GOLD PROJECT

Roxgold Inc. has released an updated mineral resource estimate for the Seguela gold project located in Ivory Coast. Total indicated mineral resources increased 7 per cent to 529,000 ounces and inferred mineral resources increased 1,286 per cent to 471,000 ounces since Roxgold's maiden March 19, 2019, mineral resource estimate.

Highlights:

  • The updated National Instrument 43-101 mineral resource estimate includes 18,693 m of reverse circulation (RC) and diamond core (DD) drilling since the completion of the Seguela acquisition in April, 2019. The drill program prioritized the delineation and definition of maiden resource estimates at the Ancien, Agouti and Boulder satellite deposits, and infilling of the Antenna deposit:
    • Updated indicated mineral resource at Antenna of 529,000 ounces at 2.3 grams per tonne and an inferred mineral resource of 64,000 ounces at 2.2 g/t;
    • Maiden inferred mineral resource of 224,000 ounces at 6.6 g/t for the Ancien deposit;
    • Maiden inferred mineral resource of 110,000 ounces at 2.6 g/t for the Agouti deposit;
    • Maiden inferred mineral resource of 72,000 ounces at 1.2 g/t for the Boulder deposit.
  • Drilling at Ancien has returned numerous high-grade intersections across significant widths while showing indications of down-plunge potential as mineralization remains open at depth. The drill program is continuing at Ancien with two rigs focused on extensionary drilling to the south and at depth of the deposit.
  • At Agouti and Boulder, an additional two rigs are continuing to drill focused on infilling selected areas and testing the strike limits of the deposits.
  • Roxgold has identified an additional 22 highly prospective targets at Seguela that have seen little to no historic drilling.

"I would like to congratulate our exploration team for achieving this important milestone," stated John Dorward, president and chief executive officer. "The Seguela project has become a substantial value-accretive project for Roxgold, and we believe that this updated resource underscores the potential for this project to stand alongside our current operations to build the foundation for Roxgold and its future. Our next priority will be the completion of the PEA in the second quarter of this year. I am very excited by Seguela's significant potential, notably at the Ancien deposit, which remains open at depth and along strike, as well as the potential within the Boulder-Agouti corridor and the additional 22 highly prospective targets that have been identified. We continue to have all hands on deck at Seguela, with four rigs turning, and we are eagerly anticipating further results over the coming months.

"The accelerated exploration activities at Seguela during 2019 has allowed us to fast-track the maiden NI 43-101 mineral resource estimates for Agouti, Ancien and Boulder, while also increasing the Antenna indicated resource, resulting in a significant increase in the total project resource estimate," commented Paul Weedon, vice-president, exploration. "With four rigs still working on additional infill and extension drilling at Ancien and Agouti, we remain confident in the potential to grow the current resource base. We look forward to see future results from Ancien, as it remains open at depth and has returned remarkable consistency in the high-grade intercepts to date; in addition, the exploration teams are advancing work on several of the remaining 22 targets where early results highlight the potential for additional satellite prospects."

Please see the associated table for the Jan. 29, 2020, Seguela mineral resource summary table and another table for the change in the total Seguela mineral resource. This mineral resource update includes the following deposits at the Seguela gold project: Antenna, Ancien, Agouti and Boulder.

Seguela mineral resource

                                     SEGUELA MINERAL RESOURCE STATEMENT SUMMARY
                   
                             Measured                 Indicated     Measured and indicated                  Inferred
           Tonnes     Grade     Metal  Tonnes    Grade    Metal  Tonnes    Grade     Metal  Tonnes    Grade    Metal
             (Mt)  (g/t Au)  (000 oz)    (Mt) (g/t Au) (000 oz)    (Mt) (g/t Au)  (000 oz)    (Mt) (g/t Au) (000 oz)

Antenna         -         -         -     7.1      2.3      529     7.1      2.3       529     0.9      2.2       64
Ancien          -         -         -       -        -        -       -        -         -     1.1      6.6      224
Agouti          -         -         -       -        -        -       -        -         -     1.3      2.6      110
Boulder         -         -         -       -        -        -       -        -         -     1.9      1.2       72
Total           -         -         -     7.1      2.3      529     7.1      2.3       529     5.2      2.8      471

Notes
(1) Mineral resources are reported in accordance with NI 43-101 with an effective date of Jan. 29, 2020, for 
Seguela.
(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 Antenna and 0.5 g/t Au for the satellite deposits, based on a gold price of $1,550 (U.S.)/ounce and 
constrained to MII preliminary pit shells.
(3) The identified mineral resources in the block model are classified according to the CIM 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 do not necessarily demonstrate economic viability.

The mineral resource estimate incorporates data from all drilling (RC and DD) to date comprising 49,723 metres in 336 drill holes, targeting Antenna, Ancien, Agouti and Boulder. Roxgold completed 18,693 m of RC and DD drilling since the acquisition of the Seguela project in April, 2019.

The estimated indicated mineral resource for the Antenna deposit increased by 7 per cent to 529,000 ounces Au from 496,000 ounces Au as per the March 19, 2019, estimate. The increase can be primarily attributed to the inclusion of an additional 4,166 m of RC and DD drilling.

The estimated inferred mineral resource increased by 1,286 per cent from 34,000 ounces Au as at March 19, 2019, to 471,000 ounces Au as of Jan. 29, 2020, with the change mainly the result of the maiden inferred resource estimates at the Ancien, Agouti and Boulder deposits, and additional drilling at the Antenna deposit.

                         SEGUELA MINERAL RESOURCE EVOLUTION (1) (2)

Mineral resource category           As at March 19, 2019 (3)                 As at Jan. 29, 2020 
                              Tonnes       Grade       Metal      Tonnes       Grade       Metal
                                (Mt)    (g/t Au)    (000 oz)        (Mt)    (g/t Au)    (000 oz)

Measured                           -           -           -           -           -           -
Indicated                        6.5         2.4         496         7.1         2.3         529
Measured and indicated           6.5         2.4         496         7.1         2.3         529
Inferred                         0.4         2.4          34         5.2         2.8         471

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) Please refer to the technical report entitled "NI 43-101 Technical Report, Seguela 
Project, Worodougou Region, Cote d'Ivoire," effective March 19, 2019, which is available on 
SEDAR, for further details.

Mineral resource modelling and estimation

The mineral resources reported herein have been estimated using a geostatistical block modelling approach informed from gold assay data collected in core borehole samples. 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 (MAIG No. 5746) and reviewed by Paul Weedon, vice-president of exploration for Roxgold (MAIG No. 6001).

A total of 185 RC and DD drill holes (30,231 m) define the Antenna deposit on a drill hole spacing that ranges from 20 m to 100 m apart along a strike extent of 1,700 m. A total of 26 RC and DD drill holes (3,273 m) define the Ancien deposit on a drill hole spacing that ranges from 25 m to 50 m apart along a strike extent of 250 m, which remains open along strike to the south and at depth. The Agouti deposit covers three main zones defined by a total of 68 RC and DD holes (8,174 m) on a drill hole spacing that ranges from 25 m to 50 m apart along a strike extent of 525 m. The Boulder deposit is defined by a total of 57 RC and DD holes (7,955 m) on a drill hole spacing that ranges from 25 m to 50 m apart along a strike extent of 1,000 m. Both the Boulder and Agouti deposits remain open along strike and depth.

The 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 and Ancien; while a combination of 1.0 and 3.0 m intervals was utilized for the Boulder estimation. 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 and 70.0 g/t Au.

Geostatistical exploratory data analysis (EDA), variogram modelling and mineral resource model validation was conducted using Snowden Supervisor software.

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.

Density values were assigned to the mineral resource model on the basis of ascribed oxidization state and lithological unit, with mineralization being assigned the density of its predominant host. A density of 1.8 tonnes per cubic metre was assigned to transported and alluvial sediments, with a range of 1.9 to 2.2 tonnes per cubic metre assigned to the oxidized weathered profile and a range of 2.70 to 3.20 tonnes per cubic metre assigned to fresh rock lithologies.

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

The mineral resource models are classified into 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, 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 $1,550 (U.S.)/ounce;
  • Mining recovery of 93.5 per cent;
  • Processing recovery of 93.5 per cent;
  • Zero mining dilution;
  • Overall slope angle of 53 degrees;
  • Mining costs of $3 (U.S.) per tonne;
  • Total processing costs (including general and administrative expense) of $19.10 (U.S.) per tonne;
  • Total selling costs (includes state and third party royalties) of $111.02 (U.S.)/ounce.

The supporting updated technical report for Seguela's NI 43-101 mineral resource estimates will be published to SEDAR in the coming weeks.

Cumulative drill results from all prospects within the Seguela gold project are available on the company's website.

2020 Seguela exploration and development outlook

Activities are progressing at Seguela with the key initiative being to work toward the completion of a preliminary economic assessment (PEA) study, which is advancing well. Mine planning, metallurgical testwork, plant design and infrastructure pricing activities are under way. The mine plan and infrastructure sizing will be based upon the updated mineral resource and anticipated extensions, delineated by continuing drilling at Antenna as well as satellite deposits such as Ancien, Agouti and Boulder, all of which are within seven km of the proposed plant site. The company anticipates being in a position to release a PEA on this basis in Q2 2020.

Similarly, environmental baseline works and permitting activities are progressing. Consultants are advancing the baseline assessments and community engagement scopes at site with the intent of incorporating these baseline studies with the completed PEA to progress the environment and mining approvals in Ivory Coast.

Exploration activities at Seguela will continue with RC and DD drilling at the Ancien, Agouti and Boulder deposits, infilling selected areas and testing the strike limits of the new resources. Additionally, exploration will be continuing to systematically test the remaining 22 targets, as well as further exploration work to identify and delineate additional targets with the permit.

Upcoming catalysts


Target timing                                                                     Event

                         exploration results from continuing drill campaigns at Seguela
Continuing                              project and Burkina Faso exploration properties
Q2/20                                           Seguela preliminary economic assessment
                                 start of drill campaign in 55 zone 600 m below surface
H2/20                        targeting depth extensions, infill and parallel structures
EOY 2020/early 2021                                       Seguela feasibility study (1)
Early 2021                                construction decision for Seguela project (1)

(1) The Seguela feasibility study will be contingent on results of preliminary 
economic assessment; the construction decision will be contingent on the 
results of the feasibility study.

Qualified persons

Paul Weedon, MAIG, vice-president, exploration, for Roxgold, 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 Seguela's mineral resource is based on, and fairly represents, information compiled by Mr. Andersen. Mr. Andersen 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 that 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 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.

Quality assurance/quality control

Seguela

All drilling data completed by Newcrest Mining Ltd. prior to the acquisition by Roxgold, and subsequently by Roxgold, 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 ground water 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 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- or NQ2-sized diamond drill bits. The core was logged, 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 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 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, or 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 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 also advancing the development and exploration of the Seguela gold project, located in Ivory Coast.

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