Dublin-based
The Ntotoroso project is 60%-owned by Moydow and 40% by Normandy’s wholly owned subsidiary, Normandy LaSource, which may boost its interest to 50% by spending a total of US$6.5 million on exploration before 2002. By the end of the October, Normandy will have spent about US$4 million, thus increasing its stake to 44%.
Whereas previous drilling had defined Zone E’s shear-hosted gold mineralization only over a 600-metre length within a weak 2.2-km-long gold-in-soil anomaly (T.N.M., May 31-June 6/99), the partners’ summer and fall campaign has seen holes collared over a 2.1-km strike length, proving continuity of mineralization laterally and at depth.
Some of the best results came from a middle 1-km-long portion of Zone E that has a true width of up to 90 metres: 82 metres (from 42 metres) of 4.12 grams gold per tonne in hole 198; 96 metres (from surface) of 3.9 grams gold in hole 195; 48 metres (from 142 metres) of 5.56 grams gold in hole 189; 67 metres (from 92 metres) of 4.13 grams gold in hole 238; 54 metres (from surface) of 2.12 grams gold in hole 235; and 43 metres (from 114 metres) of 3.01 grams gold in hole 233.
As well, Moydow says, additional shallow drilling that tested geochemical anomalies adjacent to Zone E has identified new targets.
Definition drilling was also carried out on Ntotoroso’s Zones A and C, which are contiguous with Normandy’s Kenyase and Bosumkese gold deposits, respectively. Zones A and C had been the primary focus of work at Ntotoroso until the discovery of Zone E earlier this year in an area 1 km east of the main granite-metasediment contact that hosts most of the area’s gold deposits.
The remaining drill results from Ntotoroso are due to be released in mid-October, at which time a resource estimate will be calculated.
During this phase of exploration, all expenditures are being met by Normandy, though Moydow is retaining operatorship until a positive feasibility study is completed.
Meanwhile, west of Accra at Moydow’s 31%-owned Wassa open-pit, heap-leach mine, production totalled 22,781 oz. gold during the second quarter, or 34,000 oz. in the first half of 1999. Cash operating costs were US$185 per oz. during the first six months of the year.
Wassa poured its first gold in January and is expected to produce at least 90,000 oz. this year, down from an original forecast of 120,000 oz. The mine has sold forward 210,000 oz. at an average price of US$323 per oz.
Moydow and its partners, Irish-listed Glencar Mining (59%) and the Ghanaian government (10%), carried out a drill program this summer at Wassa in an effort to expand and define additional gold mineralization along strike and adjacent to the main pit.
At startup, Wassa’s reserves stood at 23 million tonnes grading 1.4 grams gold, equivalent to 1 million contained ounces gold, with total resources pegged at 50 million tonnes of 1.25 grams gold.
Moydow does not expect to receive any revenue from Wassa until 2002, when the mine’s US$42-million development loans are repaid.
On June 30, Moydow’s working capital stood at US$1.9 million, including cash and equivalents of US$1.7 million. In the second quarter, Moydow raised C$800,800 through the exercise of warrants at $1.43 apiece, increasing the number of outstanding shares to 23.5 million.
Be the first to comment on "Moydow and Normandy explore Ntotoroso property"