Lithos finds gold on Guinean property

On its recently optioned property in Guinea, Lithos (ME) has identified an alluvial gold deposit with a resource exceeding 200,000 oz. grading 0.12 oz.

gold per ton.

Lithos must pay the Guinean vendor US$250,000 in order to gain an interest in the property, which is in the Banankoro area of the West African country.

The property will come under the ownership of a new company in which Lithos will hold a 42.5% interest. Lithos must contribute US$1.5 million to the new company for use in project development, as well as invest US$2.25 million, which will be reimbursed from operation benefits.

In Quebec, Lithos’ Wrightbar mine, which opened 15 months ago, continues to perform on target. The rate of exploitation was 443 tons per day in January and February, during which time 17,742 tons were milled. The latest pour produced 3,332 oz. gold and 630 oz. silver, bringing Lithos a net profit of $505,320.

Exploration at the northern end of the mine area has resulted in the discovery of a new gold-bearing system. The first hole, collared 900 ft.

north of the gold mine, hit 2.5 ft. of 0.57 oz. gold per ton, 2 ft. of 0.19 oz., and 1.5 ft. of 0.11 oz. The second hole, collared 600 ft. to the west, intersected 3.5 ft. of 0.49 oz. Assays from the third hole are pending.