Jilbey drills Taranga (October 14, 2003)

Drilling has begun at the Taranga gold permit in Burkina Faso, reports Jilbey Gold Exploration (JIB-V).

The property, which covers 240 sq. km of the Bouroum-Yalogo greenstone belt, was acquired earlier this year from High River Gold Mines (HRG-T) to cover anomalous soils extending from that company’s adjoining Taparko permit. In exchange, High River acquired a 9.95%-equity interest in Jilbey and the right to re-purchase 50% stakes in Taranga and the related Nongo Fayere permits for 1.5-times Jilbey’s expenditures.

The program will entail 12,000 metres using a rotary air-blast rig. Most holes will be collared over the Monlouri shear zone, where trenching reported up to 104.9 grams per tonne over 0.7 metre, soil sampling, up to 5.9 grams, and grab sampling, up to 92.55 grams.

Meanwhile, High River and Axmin (AXM-V), which is earning a majority interest in the Bouroum permit are nearing the completion of a joint feasibility study. Several near-surface zones on each property would be mined, but processing would occur at Taparko only.

At last report, the properties held a combined, in-pit diluted resource of 4.45 million tonnes averaging 3.3 grams. The estimate is based on a gold price of US$350 per oz.

Capital costs for the envisioned gravity and carbon-in-leach operation are estimated at about US$30 million.

High River holds an 80% stake in Taparko, with the government owning the remainder.

Axmin can earn a 65% interest in Bouroum by delivering a bankable feasibility study to Channel Resources (CHU-T). Channel has agreed to sell its future minority stake at US$10-15 per oz. of reserves; however, the government retains a back-in right for 10% if commercial production is achieved.