Vancouver — Buffalo Gold’s (BUF.U-V, BYBUF-O) Mount Kare project in Papua New Guinea continues to deliver wide, high-grade gold intercepts in the latest drilling on the North-Western Roscoelite zone (NWRZ).
Hole MK06-53 intersected 40 metres (from 93 metres down-hole) averaging 15.3 grams gold per tonne, including 24 metres of 24 grams gold. The NWRZ returned a number of other long, gold-mineralized intercepts, including 49 metres of 10.4 grams gold in MK06-50.
Buffalo Gold is optimistic this latest drilling shows a stronger model for the NWRZ, delineating a more continuous section of gold mineralization. Quartz roscoelite encountered in drilling is similar to that in Zone 7 at Barrick Gold’s (ABX-T, ABX-N) adjacent Porgera mine. In addition, reinterpretation of geophysical data indicates the NWRZ extends northwards towards a magnetic anomaly with coincident induced-polarization anomalies.
Aiming to build project resources and complete a prefeasibility study by mid-2007, the company is adding a third drill rig to test the extension of NWRZ.
A Mount Kare resource estimate conducted in 2000 reviewed 14.68 million indicated tonnes grading 2.36 grams gold and 33.7 grams silver per tonne, plus 10.85 million inferred tonnes at 1.98 grams gold and 22.7 grams silver using a 1 gram gold-equivalent cutoff and cutting all high-grade assays to 30 grams gold.
In mid-2005, Buffalo secured rights to acquire up to 90% of the project from Madison Minerals (MMR-V, MMRSF-O) for staged payments and work commitments leading to a completed bankable feasibility study.
Buffalo Gold posts a market capitalization of $78 million based on its 33 million shares outstanding. Shares in the company traded as high as $2.87 over the previous 52 weeks and were sitting at $1.99 at presstime. Madison shares trade in a 52-week range of 23-$1.26, and sat at $1.23 at presstime.
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