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Alecto unveils significant boost to Mali gold resource

Alecto Minerals has unveiled a 28% increase in the gold resource on the Gourbassi area of its Kossanto Gold Project in Mali. It now has an independently verified 247,000 ounces at an average grade of 1.14 grams per tonne.
Alecto unveils significant boost to Mali gold resource

Alecto Minerals (LON:ALO) has unveiled a 28% increase in the gold resource on the Gourbassi area of its Kossanto gold project in Mali.

It now has an independently verified 247,000 ounces at an average grade of 1.14 grams per tonne.

The upgrade follows 864 metres of reverse circulation drilling on the Gourbassi and represents a 131% uplift in little over a year since Alecto acquired the project.

The recent rotary air blast (RAB) drilling reveals there is potential to expand further the inferred resource estimate with the mineralisation thought remain open to the north at Gourbassi West.

What will be heartening to investors is the fact that the additional resource has been added a very low cost – around US$4.70 an ounce.

"With the knowledge gained from this season's drilling campaign, we will continue to test, using our in-house RAB rig in the first instance, for extensions to the resource zone at Gourbassi,” said chief executive Mark Jones.

The Gourbassi discoveries, while not particularly spectacular grades, have much to commend them.

They are close to surface, making them cheap and easy to mine, while the ore is of the more straightforward to process oxide and transitional varieties.

Early metallurgical work suggests the gold will be fairly straightforward to liberate.

Massakama, the other core target on Kossanto, is a different beast altogether, with extensive artisanal mining giving a clue to its high-grade potential.

This is backed by drilling, which hit mineralisation of up to 18.5 grams per tonne gold.

Eagerly awaited is the planned update from Centamin on progress in Ethiopia, where work is focusing on the Wayu Boda, in the country’s Adola Greenstone Belt, and Aysid Metekel.

The gold miner must spend US$1.8mln to take 51% of the former, and a further US$6mln to increase its holding to 70%. Meanwhile, it will spend US$6.2mln in two tranches for an identical stake in the 1,953 square kilometre Aysid licence.

The company recently announced that 2,500 metres of drilling has been completed at Wayu Boda, representing 80% of the campaign initially planned at this project while at Aysid Metekel, Centamin has formally notified Alecto that it will now proceed to satisfy its initial expenditure commitment following reconnaissance work.

The first results from Wayu Boda are expected in July.

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