Armadale PLC (LON:ACP) is to continue exploration at its Mpokoto in the DRC with an auger drilling campaign.
The company is still waiting for Africa Mining Contracting Services group (A-MCS) to complete due diligence before its provides US$20mln of construction finance.
While it waits, Armadale wants to boost the life of the proposed development by exploring to the north-west and south-east of the current resource.
Results from the auger holes will be used to target a 2,500m drill campaign.
Peter Marks, chairman, said: “The exploration programme has initially targeted, with auger drilling, oxide mineralisation to the north and south of the main orebodies where mineralisation remains open along strike, and has made good progress despite the ongoing rainy season.
“The completion of an initial 50 holes has demonstrated the extensions of gold mineralisation the north and south-west, which is very positive.
“There is increasing interest in near term gold projects in particular as the gold price continues rise.
“The Mpokoto feasibility study projected operating costs of US$792/oz and a pre-tax net present value of US$19.05mln has been established for Phase 1, which importantly relates only to the shallow oxide orebody (30-40m) and a gold price of US$1,250/oz.”
Armadale owns 80% of Mpokoto, which has a resource currently of 678,000 oz of gold.