Arae-Gassel Delivers For SearchGold

SearchGold Resources(RSG-V) has found high-grade gold mineralization in surface rock at the Arae-Gassel project in Burkina Faso, West Africa.

The company reported four assays from surface rock samples of 1-3 kg that returned 95 grams gold per tonne, 8.4 grams gold, 7.7 grams gold, and 6.2 grams gold.

SearchGold president and CEO Philippe Giaro says that, until now, Arae-Gassel had been viewed as a bulk-tonnage target, but the project hosts a hydrothermal system with high-grade quartz mineralization. The company has identified a 5-km trend on the property, named the Kerboule-Yalema trend.

SearchGold highlights high-grade drilling results from four reverse-circulation holes drilled by previous operators. These holes returned 4 metres of 24 grams gold per tonne from 42 metres depth; 2 metres of 18 grams gold from 6 metres; 2 metres of 29 grams gold from 86 metres; and 2 metres of 18 grams gold from 54 metres. True widths are not known.

The property has been dormant for the last decade, during which time artisanal miners have exposed the mineralized rock.

SearchGold believes that the Kerboule- Yalema trend is a subsidiary shear structure of the 30-km Inata- Kerboule shear, which hosts Wega Mining’s Inata deposit, 15 km south of Arae-Gassel. Inata holds 1.4 million oz. gold in measured and indicated resources in 25 million tonnes, mostly grading 1.6 grams gold per tonne. Inata is hosted on Wega’s Belahouro project, which borders Arae-Gassel.

The company says that subsidiary shears, plus the presence of intrusive rocks, are key drivers for mineralization. The Kerboule-Yalema trend is part of a larger-scale gold-bearing system hosted in a classic volcano-sedimentary package with sericite, carbonate, potassium-feldspar and albite alteration in association with an intermediate porphyritic intrusive.

The four samples were found in sheared and fractured quartz veins showing feldspathic alteration with locally tourmaline and hydrothermal breccia textures. The company reports that some quartz veins bear visible gold.

SearchGold has completed surface mapping of the project, and plans on integrating drilling data from previous operators with geological information from the exposed rock. The company is executing detailed mapping, and taking more samples for assay from the Kerboule-Yalema trend.

In September, SearchGold received an option from Somika to acquire a 100% stake in Arae-Gassel by paying US$110,000, issuing 800,000 shares, and spending US$750,000 on exploration over one year. The project is subject to a 3% net smelter return (NSR) royalty, half of which can be bought for US$1.5 million.

Arae-Gassel consists of 400 sq. km and is located in northern Burkina Faso, about 350 km northeast of the capital, Ouagadougou, and 45 km northeast of the town of Djibo (population 10,000).

SearchGold’s flagship project is Bakoudou-Magnima in Gabon, in which the company holds a 27% stake. Giaro says that majority owner Managem must raise US$30 million for construction for the project to proceed.

Measured and indicated resources at Bakoudou-Magnima stand at 2.4 millon tonnes grading 3 grams gold per tonne, for 232,000 oz. gold. The resources include reserves of 155,000 oz. gold.

SearchGold is in the midst of a $250,000 non-brokered private placement, consisting of units priced at 4¢ apiece; each unit includes one share and half a warrant, with each warrant entitling the holder to buy a share at 8¢ for 18 months.

On news of the assays, Search- Gold shares gained half a penny to 4¢, with 2.7 million shares changing hands.

The company has a 12-month trading range of 1-15.5¢ and 133 million shares outstanding.