SearchGold finds gold at surface on Arae-Gassel

SearchGold Resources (RSG-V) has found gold mineralization in surface rock at the Arae-Gassel project in Burkina Faso, West Africa.

The company has identified a 5 km trend on the property, named the Kerboule-Yalema trend. It has taken surface rock samples of 1-3 kg using a geological hammer, and has reported four assays: 95 grams gold per tonne, 8.4 grams, 7.7 grams, and 6.2 grams.

President and CEO Philippe Giaro says that the sampling returned high-grade gold assays because SearchGold specifically targeted high-grade areas, in order to demonstrate the property’s potential for high-grade quartz-vein mineralization. Until now, Arae-Gassel has been viewed as a bulk tonnage target, but the project hosts a hydrothermal system with high-grade quartz mineralization.

SearchGold highlights high-grade drilling results from four reverse-circulation holes drilled by previous operators. These holes returned 4 metres of 24 grams gold per tonne from a depth of 42 metres; 2 metres of 18 grams gold from 6 metres depth; 2 metres of 29 grams gold from 86 metres; and 2 metres of 18 grams gold from 54 metres. True widths are not known.

The property has been dormant for the last ten years, during which it was mined by artisanal miners who exposed the mineralized rock. SearchGold identified the mineral potential and sampled the rock.

SearchGold believes that the 5 km Kerboule-Yalema trend is a subsidiary shear structure of the 30 km Inata-Kerboule shear, which hosts Wega Mining’s Inata deposit, 15 km south of Arae-Gassel. Inata holds 1.4 million oz. gold in measured and indicated resources in 25 million tonnes, mostly grading 1.6 grams gold per tonne. Inata is hosted on Wega’s Belahouro project, which borders Arae-Gassel.

The company says that subsidiary shears, plus the presence of intrusive rocks, are key drivers for mineralization. The Kerboule-Yalema trend is part of a larger scale auriferous system hosted in a classic volcano-sedimentary package with sericite, carbonate, potassium-feldspar and albite alteration in association with an intermediate porphyritic intrusive.

The four samples were found in sheared and fractured quartz veins showing feldspathic alteration with locally tourmaline and hydrothermal breccia textures. The company reports that visible gold can sometimes be seen in quartz veins.

SearchGold has completed surface mapping of the project, and is planning to integrate drilling information from previous operators with geological information from the exposed rock. The company is executing detailed mapping, and taking more samples for assay from the Kerboule-Yalema trend.

In September, SearchGold received an option from Somika to acquire a 100% stake in Arae-Gassel over one year by paying US$110,000, issuing 800,000 shares, and spending US$750,000 on exploration. The project is subject to a 3% net smelter return (NSR) royalty, half of which can be bought for US$1.5 million.

Arae-Gassel holds 400 sq. km and is located in northern Burkina Faso, about 350 km northeast of the capital, Ouagadougou, and 45 km northeast of the town of Djibo (estimated population 10,000).

SearchGold’s flagship project is Bakoudou-Magnima in Gabon, which the company would like to advance to production together with majority owner Managem. Giaro says that the project could proceed pending Managem raising US$30 million for construction.

SearchGold owns a 27% stake in Bakoudou-Magnima. Measured and indicated resources stand at 2.4 millon tonnes grading about 3 grams gold per tonne, for 232,000 oz gold. The resources include reserves of 155,000 oz. gold.

SearchGold is in the midst of a $250,000 non-brokered private placement, selling units at 4¢, each unit consisting of one share and half a warrant. One warrant entitles the holder to buy a share at 8¢ for 18 months.

The last financial statements for September 30 list current assets of $264,000 and current liabilities of $339,000.

On news of the assays, SearchGold shares gained half a penny to 4¢, with 2.7 million shares changing hands. The shares have been trading in a 1-15.5¢ range over the past 12 months. The company has 133 million shares outstanding, or 145 million shares fully diluted.