New South Zone at Ronguen Offers Blue Sky Potential for Goldrush Resources

There are times when the potential of one property, one deposit, warrants all the attention of a mineral exploration company. Focusing time and resources brings about a faster and more efficient development profile for any project. Although this often means placing other projects on the backburner, it also offers a prime opportunity to realize the value of that properly as quickly as possible. The Ronguen Gold Deposit in Burkina Faso is one such project, and accordingly, Goldrush Resources (TSX-V:GOD) are concentrating their exploration efforts on the site.

With an NI 43-101 compliant Inferred resource estimate of 249,000 ounces, near surface mineralization suitable for open pit mining and a strike length of mineralization of 1.5 kilometers so far, the property shines out as Goldrush’s flagship project. Even more excitingly, a trench exploration program in 2008 uncovered additional mineralization south of the main property, and just a few weeks ago the company began their reverse circulation (RC) drilling program at the site. This now holds blue sky potential and could add significant value to the property; the next 12 months look to be very interesting times indeed for Goldrush Resources.

To give you some background, Goldrush Resources is a Canadian based junior exploration company, focusing on assets in West Africa, particularly Burkina Faso. They are currently near completion of a financing deal, expected to come through in the next week or so, that should see an additional C$3 – 4 million added to the treasury – enough to see them financed well into the latter half of next year. A share price of C$0.15 sees their market cap around C$11 million, although there is a lot of room for this to appreciate with a steady flow of results driven news flow expected in the coming months.

The Ronguen Gold Deposit, located on two of the company’s five exploration permits in the region, is situated six kilometers (km) to the north west of High River’s (TSX-V:HRG) Bissa Deposit and 90km of paved highway away from the country’s capital; Ouagadougou. In 2008 an initial NI 43-101 compliant resource estimate was made on the property, and considering a 0.5 gram per tonne (g/t) cutoff and a gold price of US$685 per ounce, estimated 5.9 million tonnes at 1.31g/t gold for a total inferred gold resource of 249,000 ounces. Bearing this in mind, it may worth noting at this stage that the price of gold reached US$1,300 just this week. The total strike length of the structure, east to west, stands at 5km, and as previously mentioned, 1.5km of this so far is a mineralized zone. Furthermore, the deposit currently stands open along both strike, to the west, and at depth below 80 meters (m) – in addition to the new south zone discovery.

And it is this south zone discovery that has Goldrush excited. In 2008, six trenches were dug on the zone, everyone of which showed significant gold mineralization. The area is now the subject of six RC holes being drilled as part of the second phase exploration program, and hopes are high at Goldrush that this could prove to be a significant and value adding addition to the Ronguen Property.

This second phase is a 36 RC drill hole program, totaling around 3,200m, including 12 holes in the main zone designed to extend the deposit at depth, 3 holes set to extend the deposit along strike to the west, and numerous infill drilling and three trenches designed to upgrade some section from the Inferred to the Indicated category. The size and extent of the program lends itself well to results driven news flow going forward, and speaking with Don Willoughby, Goldrush’s VP of Corporate Development, he fully expects results to be released on a regular basis throughout the next few months, as and when assay results come in – starting in a couple of weeks time.

So what next for Goldrush? Following the completion of this exploration phase, the company intend to fully evaluate the results, and then plan the next program accordingly, due some time next year. With the current round of financing almost complete, Goldrush don’t have any plans to seek further funding in the near future, although the potential for exceptional results does open up the possibility of a yet unplanned financing, in order to expand their exploration at Ronguen. In addition, of the property package they are currently assembling, they are open to allowing other exploration companies to purchase or option the permits, again opening up the possibility of some interesting and value-adding news flow down the line.

Another interesting point to consider is the company’s ongoing business model of building a solid property portfolio in West Africa. Although a long-term strategic goal, and by all means with nothing yet set out, the company have still expressed their ongoing assessment of properties in the region. Interesting opportunities are no doubt arising, simply from their people’s vast experience, contacts, knowledge and time spent in mining and exploration in the region. The company have expressed a general aversion away from grassroots projects, instead looking at more advanced stage projects, at a stage where they would be ready for drilling. Again the potential for some interesting news is abound, although at this stage, who could say if and when that would be.