Cambior intersects Seogui gold

A first phase of drilling at the Seogui gold project in Guinea has returned heartening results for Cambior (CBJ-T).

The 200-sq.-km property is 75 km southeast of the country’s only producing gold mine — Siguiri, run by Ashanti Goldfields (ASL-N). Cambior can purchase an 85% interest in the grassroots project from a private vendor for an unspecified amount.

The 19-hole, 1,482-metre drill program tested two saprolitic gold anomalies spaced 15 km apart. The holes averaged 78 metres in length and were drilled 45 to the east and spaced 75 metres apart on individual fences.

All but two were collared in the larger, southwestern anomaly, along four fences divided among three areas known as Krouba, Krouni and Kabada. The best results came from Krouba, where holes 10 and 11 outlined a single mineralized section ranging from 40 to 47 metres in true width grading, on average, 3.7 grams gold per tonne. Hole 10, which ended in mineralization, intersected 41 metres grading 5.2 grams gold, whereas hole 11 returned 1.4 grams over 27 metres, including 1.1 grams over 4 metres.

Collared on the same fence as holes 10 and 11 was hole 12, which cut 7 metres grading 1.9 grams, including 1 metre of 1 gram. Results from holes 9 and 14 were less spectacular: 1 metre grading 1 gram and 3 metres grading 1.1 grams, respectively.

Collared 750 metres to the south, hole 15 returned 2 metres of 2.7 grams, including 0.5 metre grading 3.3 grams. Hole 16 intersected two 1-metre-long intervals averaging 3.7 and 4.6 grams.

At Krouni, about 1.7 km north of the northernmost fence at Krouba, seven holes returned between 1.3 and 7 grams over 2-8 metres. All were collared on a single fence. Highlights include:

– hole 4, which returned 3 metres grading 2.3 grams, 2 metres of 7 grams and 2 metres of 1.9 grams;

– hole 5, which cut 5 metres averaging 5 grams, 1 metre of 2.6 grams and 2 metres of 1.6 grams; and

– hole 7, which intersected 8 metres grading 2.5 grams.

The Kabada target was tested by one hole only; it averaged 3.1 grams over 4.5 metres. The prospect lies 1.6 km south of the southern zone at Krouba.

The Southwestern anomaly trends north for 6 km, as defined by anomalous gold-in-soils and shallow pits dug by local miners. Gold mineralization is associated with steeply west-dipping, foliated sandstones characterized by quartz veinlets and stockworks.

The Southeastern anomaly is similarly defined but half the length. Mineralization here is hosted by intrusive rocks and foliated sandstones. Of the two holes drilled, only one returned significant results: 10.2 metres grading 1.1 grams.

Meanwhile, Ashanti has increased by 200 metres the strike length of the Eureka Hill deposit, one of three currently mined at Siguiri. Mineralization extends to the southwest, beyond the current pit boundaries. Highlights include:

– hole 143, which intersected 28 metres grading 2.6 grams and 17 metres grading 3.2 grams;

– hole 150, which intersected 18 metres grading 4.1 grams;

– hole 155, which averaged 3.3 grams over 18 metres; and

– hole 167, which cut 3.6 grams over 20 metres, 3.3 grams over 13 metres, and 2.5 grams over 30 metres.

Also, a zone of low-grade mineralization was discovered immediately north of the Sanu Tinti pit. Further drilling is required to assess its potential.

Siguiri is Ashanti’s lowest-cost producer, having cranked out 89,162 oz. at US$169 per oz. in the final quarter of 1999 — more than double the amount produced in the previous quarter, when output was hampered by unusually heavy rains.