Polymetals Resources Ltd (ASX:POL) looks forward to progressing its two gold projects within the Siguiri Basin in Northeast Guinea, West Africa, as it enters the new financial year debt-free.
The company has two exploration licences - The Alahiné project covering 64.2 square kilometres and the Mansala project covering 48.2 square kilometres - with both hosting extensive historic and current artisanal gold workings, reinforcing the exploration potential of the area.
Alahiné Gold Project
The company recently completed its Phase 2 drilling program at Alahiné, which was designed to follow up soil gold anomalies and mineralised drill intercepts defined by previous exploration.
This program was completed in early August.
Non-executive chairman David Sproule said: “Pleasingly, whilst we initially planned Phase 2 to comprise 5,100 metres of drilling, soft ground conditions due to deeper than expected weathering resulted in an additional 2,220 metres of drilling, for a total of 7,320 metres of drilling.
“Drill samples from the Alahiné drilling program have been delivered to the SGS analytical laboratory in Mali with all assays expected by end of September.
“We are encouraged by what we have seen at Alahiné, and the assay results will enable us to plan the next steps in our exploration strategy within the Siguiri Basin.
“We look forward to progressing our projects in the year ahead and keeping our shareholders updated on our progress.”
Mansala
Systematic exploration of the Mansala Licence comprising an extensive program of reconnaissance soil geochemistry was completed in late December 2020.
The layout of the sampling program was closely similar to that used for the nearby Alahiné Licence and compositing of adjacent samples was employed to minimise assay costs.
A total of 1,075 samples were submitted for assay.
The results of the current survey have confirmed that in summary, 5.0 square kilometres or 10.4% of the area surveyed reported gold values in excess of 40ppb gold and 2.5 square kilometres or 5.0% of the area reported values greater than 130ppb gold.
Additionally, 29 areas of multi-element anomalism – gold, silver, arsenic, antimony, bismuth, molybdenum, tellurium and tungsten were flagged for follow-up.
Debt-free
Subsequent to the end of the reporting period, a loan of $250,000.00 advanced to the company by Polymetals Group Pty Ltd, a company related to David Sproule, was repaid in full.
Polymetals is now debt-free.
Craton Resources acquisition
On January 14, 2021, the company acquired 100% of the share capital in Golden Guinea Resources SARL.
Under the SPA, the seller’s existing loan was effectively being taken over by the company in consideration for:
- A payment to Craton of $100,000 in immediately available funds, which constituted a reimbursement of some of Golden Guinea’s exploration costs, which had been funded by Craton; and
- The issue of 14,157,647 shares at an issue price of $0.15 per share to Craton.
Listing on ASX
On June 29, 2021, Polymetals achieved a significant milestone with its listing on the ASX following the successful completion of its Initial Public Offering (IPO).
The IPO raised $5.2 million through the issue of 26 million new shares at $0.20 per share, which will go towards ongoing gold exploration activities within the Siguiri Basin in Northeast Guinea, West Africa.