In the news: Amani GOLD
AMANI GOLD (formerly Burey Gold)††
ASX:ANL | A$0.037 | US$35m | Speculative Buy
December Quarterly Report
Amani Gold has announced its Activities Report for the December quarter. This included the results of the final ten RC and three diamond drill holes from the infill programme at the Kebigada Prospect on its Giro Gold Project in the DRC.
COMMENT: As previously reported, all infill drilling for the completion of a maiden inferred resource estimate at Kebigada has been completed. From the latest results, Holes GRRC 196 & 198 were notable in that they returned 70m at 1.86 g/t and 73m @ 1.15 g/t respectively; they were each at the end of a drill line, indicating that mineralisation remains open to the east in the northern portion of the deposit. Drilling has now outlined a mineralised envelope that is 1,500m along-strike, typically 250-400m wide and with depths of more than 200m. This zone contains multiple zones of mineralisation and remains open at depth, on strike and to the east.
Additional drilling is planned to test extensions of mineralisation at Kebigada in the March quarter, along with a scout drilling programme to test nearby geochemical anomalies. The company also plans to undertake follow-up trenching and drilling programmes at the Douze Match Prospect further to the north.
Pending the completion of a maiden resource estimate for the Kebigada Prospect in 1Q17 (which we believe could be approximately 2.0Moz of gold at 2.0 g/t,) we continue to recommend the company as a Speculative Buy.
Kebigada Prospect: maiden inferred resource estimate to be completed by the end of 1Q17 — Drilling has outlined a broad mineralised envelope over a strike length of 1,500m at widths of up to 400m, and it remains open at depths exceeding 200m within which there are multiple mineralised structures. Preliminary metallurgical test-work from 8 November indicated that recoveries of 90-91% could be expected from oxide and fresh rock using straightforward CIL processing at a grind size of 75 microns. We continue to estimate that drilling to date at Kebigada may have outlined a resource of 2.0Moz of gold at a grade of around 2.0 g/t. Further drilling will focus on extending the resource.
Douze Match Prospect: follow-up trenching and drilling planned for the current quarter — It has proved difficult to follow up the spectacular results from an initial shallow, RC scout drilling programme at the Tango area that were announced in June 2016. Amani is reviewing all data and may consider further geophysical methods in order to get a better structural understanding of the area, before following up with a programme of trenching and drilling during the current quarter.
Amani’s current market cap is A$47m/US$35m — The company has 1,257m shares outstanding, with 434m options exercisable at A$0.05/share until July 2017 and 52m options and performance rights exercisable at prices from A$0.05/share to A$0.10/share expiring from November 2019 to December 2020. The company also has 9m performance rights outstanding. Fully diluted shares outstanding based on ITM options are therefore 1,286m. Cash resources at the end of December were A$6.2m, with cash from ITM options coming to A$0.2m, if exercised.