Appleton Gains 200% On Malian Gold Hit

VANCOUVER — A high-grade gold hit from the Manalo gold project in Mali propelled Appleton Exploration’s (AEX-V, APPPF-O) share price to new heights recently.

A stepout, reverse-circulation (RC) hole testing sub-parallel gold anomalies near the main Dialafara zone returned a large intercept: 640 grams gold over 3 metres, starting around 53 metres down-hole. The drill was oriented perpendicular to the interpreted trend of mineralization and collared 50 metres east of the main area of mineralization.

On news of the assay, Appleton’s share price gained 43¢ or 215% in a day to reach a new all-time high of 63¢; the next day, it settled to 49¢. During those two days more than 36 million shares changed hands, slightly more than the company’s 33 million outstanding shares.

The majority of the company’s drill program is focused on the Dialafara zone, a gold-in-soil anomaly measuring 3 km by 500 metres. Previous project operator Delta Exploration, which has become a wholly-owned subsidiary of Rockgate Capital (RGT-V, RCKGF-O), pulled drill-core intercepts grading 15.6 grams gold per tonne over 16 metres and 29 grams gold over 6 metres from Dialafara.

In its first holes into the zone, Appleton has not yet hit grades that strong, but early results are promising. To clarify, Appleton’s drill hole numbers started at 41 to follow those drilled by Delta. The company’s first hole, hole 41, first hit significant mineralization at 48 metres depth, cutting 1 metre of 36.4 grams gold. Two other short intercepts followed, carrying much lower grades: 1 metre of 1.21 grams gold from 109 metres depth and 3.1 metres of 0.88 gram gold from 118 metres.

The next effort, hole 42, returned 1 metre of 5.48 grams gold from 126 metres down-hole and then hit 7.5 metres averaging 2.55 grams gold at 132 metres. Other results to date include 5 metres grading 1.09 grams gold from 33 metres depth, 5 metres of 1.34 grams gold from 139 metres depth, and 11 metres of 1.14 grams gold from 66 metres.

Delta’s earlier work at Dialafara outlined two steeply dipping quartz vein zones. Appleton’s initial work at Dialafara is focused on the northern and southern segments of the anomaly. Drill results from the smaller north zone indicate the presence of multiple, steeply dipping, northwest-trending quartz-gold structures striking for some 700 metres through Birimian sediments. In the Dialafara South area, which is offset 500 metres to the west, mapping is revealing a dominant north-northwest trend and a secondary northeast trend. Previous drilling concentrated on the secondary trend.

The Manalo project is part of the Archean Birimian greenstone belt of West Africa and comprises three exploration permits totalling 150 sq. km. The project, which is 100 km southwest of Mali’s capital city Bamako, is accessible by road.

Delta Exploration started exploring at Manalo in 2004, conducting airborne and ground-level geophysics and soil geochemistry. The work delineated six gold anomalies: Dialafara, Dialafara Nord, Manalo Nord E, Manalo Sud E, Mansaya and Siribada. Delta then completed 15,115 metres of air-core and RC drilling on the anomalies.

The major structures in the Manalo area trend northwest and most of the gold zones line up along northwest trends. Sitting 8 km southeast along trend from Dialafara is Mansaya, where a metapsammite horizon shows consistent quartz alteration. The best intersection from this horizon was 0.8 gram gold over 20 metres, suggesting a lower-grade, bulk-tonnage target. In the southern part of the zones, veins become more prominent and one drill intersected 10.7 grams gold over 3 metres.

Dialafara Nord sits some 4 km north of Dialafara and shares a northwest trend with Manalo Nord E, which lies 8 km to the southeast. At Dialafara Nord, 975 metres of drilling in eight holes started to outline a northwest-striking quartz vein system. The best intersection from the zone was 18.65 grams gold over 1 metre. And at Manalo Nord E, a similar steep, northwest-striking quartz vein zone has been traced for 500 metres along strike before it crosses the property boundary. Of 57 short holes, the best intersections were 18.5 grams gold over 11 metres and 12.06 grams gold over 6 metres.

And Siribada marks the southeast end of another northwest-striking trend, along which also lie several small, anomalies. At Siribada, extensive artisanal workings have exposed intense clay alteration with quartz veins and a pervasively sericitized psammitic unit striking 2.5 km. Of the 21 holes punched into Siribada, the best result was 2.61 grams gold over 2 metres.

The final zone sits off-trend in the southeastern corner of Appleton’s property. Manalo Sud E is another northwest-striking quartz vein system; of 11 holes, the best result was 0.73 gram gold over 5 metres.

Appleton signed a deal in February to earn a 100% interest in Manalo from Delta. For its first 65%, Appleton must pay US$50,000, hand over 1.5 million shares and warrants, and spend US$2.5 million on exploration within three years. To lift its interest to 100%, the company has to pay Delta US$1.5 million and deliver a feasibility study or arrange production financing for a plant with minimum annual production of 100,000 oz. gold within eight years. Delta retains a 2% net smelter return royalty; Appleton can purchase half of the royalty by the first anniversary of production for US$1 million.