Goldplat (AIM: GDP) has reported on its planned development initiatives at its recently optioned Nyieme gold project in Burkina Faso, allocating US$0.5 million for exploration, which will include a large scale drilling programme with a JORC resource calculation expected to follow later in the year.
Results from previous exploration included values of between 1 and 100 g/t (grammes per tonne) gold over a strike distance of over 2 km (kilometres) and intersections of 3 m (metres) graded at 17.48 g/t (grammes per tonne) gold, 1 m at 16.76 g/t gold, 1 m at 4.46 g/t gold and 1 m at 17.83 g/t gold from a 2,015 m RC (reverse circulation) drilling programme. Drilling has also indicated that multiple auriferous quartz veins could be present, which could have a significantly positive implication on a gold resource.
The company has allocated US$0.5 million for further exploration, which will include a 2,500 m diamond drilling programme planned for 2010 followed by a JORC-compliant resource with further targets to be explored including an “extremely strong” induced polarization anomaly 2.5 km east of the Nyieme trend.
Goldplat will also carry out further surface geochemical and mapping programme to further define the southerly extent of the veins.
“We believe previous exploration results highlight the exciting potential of the Nyieme project...with a defined development plan in place, which will begin with 2,500m DD programme, we aim to establish a JORC-compliant resource which will form the basis for our production development programme if economically viable. With this in mind, the board believes that development of the Nyieme Project, coupled with its other gold operations in Kenya, Ghana and South Africa, will facilitate the realisation of Goldplat’s aim to become a mid-tier gold producer and refiner in Africa,” said chief executive Demetri Manolis.
Goldplat entered into an agreement with Sanu Exploration (BVI) Ltd, a wholly owned subsidiary of NGEX Resources Inc, to acquire Sanu's option over the 246 square kilometre Nyieme gold project in Burkina Faso in late December 2009.
Goldplat will make several payments to Sanu from until October 1 2010 totalling US$215,000 in return for the sole, immediate, exclusive and irrevocable option over Nyieme.
The option period lasts until 1 October 2011. In addition, Goldplat is required to fund expenditure at Nyieme of US$250,000 in the period up to October 20 2010 and a further US$250,000 in the period up to the end of the option period.
Broker WH Ireland noted the announcement from Goldplat, saying that diamond drilling, while being substantially more expensive than reverse circulation drilling, would allow the geologists to more accurately establish the mineralogy and petrology, sample exact widths, and work out the paragenesis of mineralisation if encountered, also demonstrating that the company was taking the project very seriously.
“Their approach of doing things properly and “not dying wondering” is refreshing, in that they are willing to step out step out of their comfort zone, and realise their aim of becoming an African based mid-tier gold producer and refiner,” WH Ireland said in its note.
The broker has placed a “speculative buy” rating on the stock, which is currently valued at 12.25 pence per share.
Shares in the company added more than 6% on the news.