Predictive Discovery Ltd (ASX:PDI) shares have reached a new eight-year high, up more than 55% to as much as A$0.1475 intra-day on the back of bonanza grades at the Bankan Gold Project in Guinea that revealed a new high-grade zone.
The high-grade intersections have extended the gold core zone down dip for more than 250 metres, which is also open at depth.
Notable results over broad widths and consistency increasing at depth include:
- 49.7 metres at 11.7 g/t gold from 301 metres, including 17 metres at 31.9 g/t from 313 metres and 7 metres at 50.3 g/t; and
- 55.6 metres at 5.7 g/t from 237 metres, including 40 metres at 7.3 g/t from 239 metres.
Bankan Project, NE Bankan Longitudinal Projection illustrating emerging high-grade gold zone (red stipple), widening at depth.
“Simply remarkable”
Speaking to the results, managing director Paul Roberts said: “Following up our recent, previous best-ever intercept of 44 metres at 8 g/t gold, with a significantly broader and higher-grade gold intercept 100 metres to its north is simply remarkable.
“Added to that, on the new drill section reported here, we can see a clear progression of both increasing grade and grade consistency as we drill deeper.
“Furthermore, with these new results, we now have a high-grade gold zone which is 100-200 metres long, extends down-dip for over 250 metres and, very promisingly, is open at depth.
“Until now, NE Bankan has been shaping up as a large gold deposit with excellent geometry for a large-scale open pit mine.”
Drilling has been carried out on 40 metres spaced lines with a 40-80 metre hole spacing along lines.
Predictive has now completed the drilling planned for its maiden resource estimate as well.
Results add “a whole new dimension”
He continued: “These new results have added a whole new dimension to the project as it now appears that the core of the deposit contains consistently higher grades in a zone which is expanding at depth.
“This offers clear justification for drilling deeper on this deposit.
“Our immediate task is to define the new high-grade zone by infill and extension drilling.
“To this end, the multi-purpose drill rig currently on site will be focused on further defining and extending this zone over the next few months.
"Elsewhere, we continue to obtain broad, good-grade shallow gold intercepts at Bankan Creek and are continuing to obtain encouraging gold results in our regional auger program, adding to our inventory of regional drill targets on the Bankan Project.”
Looking ahead
In addition to the drilling reported to date, included within the maiden resource drilling program is one additional deep DD drill hole to the south of the known deep gold zone, testing the inferred southerly plunge position of the plus 100g/m gold mineralised contour.
Assay results for this hole have not yet been received.
At present, one multi-purpose RC-DD rig is on-site and has already commenced drilling a deeper hole beneath hole BNEDD0086.
This rig will be employed to drill both deeper holes and infill drill holes within the inferred high-grade zone.
Predictive is currently working with a Senegal-based drill contractor to bring a truck-mounted aircore rig on to site.
This rig will be employed during the rainy season to test the accumulating number of new targets defined by power auger drilling on the Bankan Project over the past nine months.
Change of director’s interests
Meanwhile, company directors have demonstrated their faith in the company’s gold strategy by participating in a recent placement.
In May, Predictive received commitments of A$26.5 million in a placement to institutional, sophisticated and professional investors.
The placement was narrowly focused on several tier-1 North American funds with a track record of strong success investing in emerging West African gold companies as well as targeting highly accomplished ultra-high net worth resource investors.
After receiving shareholder approval on July 9, MD Paul Roberts acquired 375,000 shares at 8 cents a share in an indirect interest, increasing the number of securities held in that interest to more than 6.3 million shares.
Non-executive director Steven Michael also participated with the purchase of 187,500 shares in an indirect interest, increasing his holding to 366,080 shares in that interest.