Through its African subsidiary, Golden Star Resources (TSE) has increased its property holdings in Mali.
Pan African Resources, the subsidiary, has acquired the Dioulafoundou project, which lies 170 km south of Kayes in western Mali. It consists of four blocks totalling 28 sq. km, three of which contain artisanal gold workings.
The geology is underlain by lower Proterozoic, fine-grained metasediments intruded by diorites and granodiorites.
Pan African has conducted extensive soil sampling, trenching and ground geophysics, the results of which indicate several strong, north-trending structures that control mineralization.
Gold mineralization is associated with sulphides and quartz stockwork in highly altered diorite. The artisanal miners appear to follow east-trending quartz veins within these mineralized zones.
Pan African has completed an 8-hole diamond drill program on the main Dioulafoundou block, and six of these holes intersected significant gold mineralization. Drill results are listed below.
Subject to governmental approval, Pan African will acquire 75% of the shares of the Mali corporation D’Almeida Freres et Compagnie, which holds the 4-sq.-km Dioulafoundou block. Pan African will acquire the other three blocks in return for cash, a 0.3% royalty and a 5% equity ownership in any company formed for the purpose of mining the property.
The total package will cost Pan African US$780,000 over a 3-year period.
The company is currently drilling in Ethiopia, as well as in Gabon and other areas of Mali. Drilling in Ivory Coast is to begin in early 1996.
HoleInterval(m)Thickness(m)Gold(g/t)
267-78 11 2.52
83-89 6 1.90
349-68 19 1.22
465-81 16 3.53
579-97 18 2.59
6155-164 9 2.87
759-61 2 8.01
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