Panthera Resources PLC (AIM:PAT) has started a diamond drilling programme on its Kalaka project in Mali to expand the deposit size to above 3 million ounces.
Two holes drilled historically indicated significant gold-bearing widths of more than 100m respectively.
Based on that exploration and analysis since carried out by Panthera, it has identified an exploration target of between 0.5 Moz to 1 Moz gold.
However, the company adds that it has yet to drill the northern extension of the mineralisation or several similar targets within the project area.
Taken together, this would potentially expand the exploration target to approximately 3 million oz of gold.
Mark Bolton, Panthera’s managing director, commented: "The Kalaka Project in Mali has large-scale, low-grade gold mineralisation potential."
Historical drilling consistently reported significant gold intercepts including diamond hole K1AD002 (191.8m at 0.52 g/t gold) and RC drill hole K1ARC028 (117m at 0.59 g/t including 41m at 1.02 g/t Au) at the K1A prospect, he added.
Bolton said that discussions are ongoing over the restructuring of its interests in its West African gold assets.
“If successful, it is anticipated that this will not only provide a path for the company to realise significant value from its West African gold portfolio but also provide funding for both the current drilling programme and advancing these assets going forward."