Vancouver – Buffalo Gold‘s (BUF.U-V, BYBUF-O) Mt. 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 downhole depth) 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. Additionally, re-interpretation of geophysical data indicates the NWRZ extends northwards towards a magnetic anomaly with coincident induced polarization anomalies.
The company is adding a third drill rig to extensively test the extension potential of NWRZ enroute to building project resources and a completing a pre-feasibility study by mid-2007.
A Mt. 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 an additional 10.85 million inferred tonnes at 1.98 grams gold and 22.7 grams silver using a 1 gram gold equivalent cut-off and cutting all high grade assays to 30 grams gold.
In mid-2005 Buffalo Gold secured rights to acquire up to 90% interest in the project, assigned through offshore company Longview Capital Partners, from Madison Minerals (MMR-V, MMRSF-O) for staged payments and work commitments leading to completion of a bankable feasibility study.
Shares of Buffalo Gold surged 56% on the August 29th drill results, closing up 85 at $2.37 apiece on trading volume of over 3.5 million. The company posts a market capitalization of $78 million based on its 33 million shares outstanding. Madison shares gained more than 90% on the news, closing at $1.03 on volume of almost 4 million.
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