Semafo extends mineralization at Nyafe (June 03, 2002)

Reverse circulation drilling by Montreal-based Semafo (SMF-T) has extended the Nyafe gold-bearing structure, on the Mana property in Burkina Faso, some 300 metres to the northeast.

Selected results form the 23-hole, 1,332-metre drilling campaign include the following:

– hole 113, which returned 9 metres (from 26 metres below surface) grading 18.4 grams gold per tonne;

– hole 115, which cut 6 metres (from 29 metres) averaging 8.9 grams gold, including 4 metres (from 29 metres) of 12.9 grams;

– hole 120, which intersected 10 metres (from 21 metres) running 10.9 grams gold; and

– hole 129, which hit 9 metres (from 42 metres) of 11.1 grams gold;

Other intersections yielded between 2 and 18 grams gold over widths of 2-3 metres.

The latest holes have increased the Nyafe structure’s strike length to more than 2,400 metres. The oxidation zone has an average vertical depth of 50 metres.

Mineralization at Nyafe is associated with a major fault zone hosted by altered mafic schists interbedded with massive andesitic lavas. Most of the gold-bearing rocks are highly altered and schistose mafic tuffs, and they are also quartz-veined locally.

Some 1 million tonnes grading 8.5 grams gold have been outlined at Nyafe, Semafo’s original discovery at Mana. Nayfe is one of three deposits at Mana.

Earlier this year, Semafo tabled an estimated indicated resource of 3.5 million tonnes grading 2.38 grams gold per tonne at the newly discovered Wona zone, 8 km to the north. The estimate is based on a cutoff grade of 0.5 gram gold.

Of the total resource, 1.8 million tonnes of oxide material run 2.45 grams gold and 1.7 million tonnes of sulphide material average 2.31 grams gold.

The main TW-4 structure has been traced over a strike length of 2 km. The oxide resource has an average depth of 60 metres.

Mineralization at Wona appears to be hosted by three structures in highly deformed felsic tuffs.

Induced-polarization (IP) surveying has detected anomalies extending from Wona, as well as a separate anomaly to the east. In all, seven IP anomalies were identified.

The Maoula deposit is 3 km south of Nyafe and has been traced for 600 metres along a northeastern strike.

Semafo has boosted its stake in the Mana property to 95% via a partial buyback of a local partner.

Meanwhile, in western Mali, Semafo has agreed to sell its 77% stake in Segala Mining to Nevsun Resources (NSU-T) for US$4 million in cash and US$5 million worth of shares over three years. Due at closing are US$1 million in cash plus nearly 2.9 million Nevsun shares worth US$2 million.

Segala Mining owns the namesake Segala gold property. The remaining shares are held by the government of Mali (20%) and a minority shareholder (3%).

A re-evaluation of Segala’s resource by Semafo points resulted in a smaller, but higher-grade, estimate. The new estimate pegs the indicated resource at 4.2 million tonnes grading 5.4 grams gold per tonne. Of this, 3.2 million tonnes are in sulphide mineralization with a grade of 6.2 grams per tonne; the rest are in two zones of oxide mineralization — Segala Main and Segala Northwest.

The Segala Main zone, which overlies the sulphide zone, contains 429,000 tonnes grading 2.4 grams per tonne. The Northwest zone has a further 486,000 tonnes running 2.6 grams.

Reverse-circulation drilling on the Northwest zone revealed that gold mineralization continues for 400 metres along strike, with grades peaking at 30 grams gold.