Papillon Resources (ASX: PIR) continues to unlock the massive potential of the company's West African gold project Fekola, with the latest four diamond drilling holes delivering some broad near surface gold intersections.
Highlights from twin holes include; 75 metres at 4.12 grams per tonne (g/t) gold from 104 metres; and 32 metres at 7.35g/t gold from 59 metres.
The outcome of these results is that the board and management said that it adds further weight that Fekola has good resource potential and warrants significant additional capital investment.
Papillon is very well funded at the moment, with a A$16 million placement conducted earlier in the month boosting the company's cash position to around $27 million.
Funding allocation in 2012
Papillon is well funded to commence Scoping Studies at the project, as the company moves towards a maiden gold JORC Resource by around mid-2012.
Highlighting the strategic location of the project, it is situated in the Mali West regional gold province, which has more than 22 million ounces of gold within 60 kilometres.
Other projects in the vicinity include Randgold Resource's (LON: RRS) 11.5 million ounce Loulo project and AngloGold Ashanti's (NYSE: AU) 13.1 million ounce Sadiola project.