Turaco Gold (ASX:TCG) released a maiden JORC-compliant resource estimate for its Afema gold project in West Africa on Tuesday (August 27), also reporting metallurgical testwork results.
The resource of 2.52 million ounces of gold covers the Woulo Woulo, Jonction and Anuiri deposits, with 60 percent being in the indicated category. The company said the report is an interim estimate as work is ongoing.
Respectively the deposits hold 1.25 million ounces, 660,000 ounces and 660,000 ounces of gold.
Other deposits at the Afema property include Asupiri, Brahima, Adiopan and Toilesso. They were excluded from the resource estimate as they are still subject to further drilling and metallurgical testwork.
“Expenditure and acquisition costs (inclusive of all deferred milestone payments) equate to less than US$7 per ounce attributable to Turaco,” shared Justin Tremain, managing director at Turaco.
“Following the excellent metallurgical results at Jonction, with 76 percent and 85 percent leach gold extractions achieved, a similar systematic metallurgical testwork program has commenced on Anuiri. Testwork will then be undertaken on the additional deposits which have been excluded from the (mineral resource estimate),” he added.
Afema is located in Southeast Cote d’Ivoire, and Turaco notes that small-scale mining took place at the Afema shear during the 1990s. During that time 125,000 ounces of gold were produced at the site before operations ceased in 1998.
In April, Turaco acquired a 51 percent interest in Taurus Gold Afema Holdings, the owner of Afema Gold, which owns the granted mining permit for Afema. Turaco has the right to increase its stake to 70 percent.
Mineralisation at Afema remains open in all directions at all deposits, the company said.
It expects to commence exploration drilling within recently granted exploration permits in the coming weeks. It will target new discoveries near the Woulo Woulo, Jonction and Anuiri deposits.
“Further results from drilling at Woulo Woulo are expected shortly. Two rigs will continue to operate,” said Tremain.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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