Predictive Discovery Ltd (ASX:PDI) is trading at a five-year high after delivering its maiden mineral resource estimate (MRE) for the Bankan Gold Project in Guinea’s Siguiri Basin.
The precious metals explorer tabled a 3.65-million-ounce gold resource across the NE Bankan and Bankan Creek deposits,
PDI’s pioneer MRE comes only 17 months after the company reported on its gold discovery drill holes at Bankan, meaning it has seen rapid growth
There’s still strong potential to grow the asset’s mineral resources, with a series of drilling programs continuing over the tenure since the MRE cut-off date.
Shares higher
Predictive shares have been up as much as 37% with shares at A$0.24, a new high of more than eight years.
The company has seen its share price rise 58% in the last week and is up more than 345% from the 12-month low of A$0.054.
“Just the beginning of the story”
Speaking to the maiden resource, PDI managing director Paul Roberts said: “We are delighted by the scale of this initial mineral resource estimate, which reflects excellent continuity of mineralisation and has been generated from 32,700 drilling metres."
“After only 17 months from the announcement of the initial NE Bankan drill results, this is just the beginning of the Bankan gold discovery story," he said.
“We are very well-funded to accelerate a drilling program to grow resources in both NE Bankan and Bankan Creek, increase drill density to increase confidence and to quickly advance earlier stage regional prospects through to discovery and resource definition.”
3.65 million gold ounces
The Bankan Gold Project’s mineral resource totals 72.8 million tonnes of resource, grading at 1.56 g/t gold for 3.65 million ounces.
Independent group CSA Global Mining Industry Consultants prepared the MRE in accordance with the JORC 2012 code.
As the cut-off grade for the MRE is lifted, the contained gold ounces remain strong at 2.82 million ounces with an average 2.29 g/t gold grade.
Bankan’s resource discovery cost currently stands at A$4 (US$2.90) an ounce, which is considered very low by industry standards.
And this is far from the end of the road for the Siguiri Basin gold play: with $24 million in the bank, PDI is targeting a substantial increase in its resource base at Bankan as it ramps up exploration.
The precious metals explorer is undertaking step-out and deeper drilling across the NE Bankan and Bankan Creek deposits and regional targets in a bid to further bolster the gold resource in the future.
In tandem, Predictive’s scoping study-level metallurgical test-work continues, with free milling gold and 94% to 98% gold recoveries demonstrated across a broad representative sample.
Some of the key MRE metrics.
Drilling continues
PDI believes there’s scope to further advance the mineral resource at Bankan through a series of drilling expeditions.
These programs have turned the soil at the gold asset since the MRE cut-off date on September 11 and include:
- Drilling at the high-grade zone: Presents significant potential for further growth at NE Bankan, now tested to 350 metres to 400 metres vertical depth. Extensional drilling to depth and along strike is ongoing;
- Regional exploration: Aircore drilling 1.5 kilometres from NE Bankan intersected 28 metres at 12.1 g/t gold – more than nine targets along the 35-kilometre-long Bankan structural trend to be tested; and
- Bankan Creek drilling: Drill coverage at depth is limited, with the deposit remaining open in all directions.
Predictive’s tenure in Guinea’s Siguiri Basin.
A project with Fekola potential
Bankan’s maiden gold resource — and the speed in which it was delivered — indicates the project could host similar potential to a West African gold play.
Roberts continued: “Our gold discovery success in such a small time period invites comparisons with the best gold deposit discovered in West Africa in the last decade: Fekola in Mali.
“Also announced 17 months after first discovery, the Fekola MRE contained 3.9 million ounces, averaging 1.7 g/t gold at a 0.5 g/t cut-off grade and 3.1 million ounces, averaging 2.4 g/t at a 1 g/t cut-off grade.
“Today, Fekola’s 2021 production is projected to be 530,000 to 560,000 ounces at an all-in sustaining cost (AISC) of US$745 to US$785 per ounce, with current quoted resources (excluding mine depletion since 2017) at Fekola itself and nearby deposits totalling 7.6 million ounces.”
With room for further MRE updates in the future, PDI is determined to continue progressing its cornerstone gold project in the months to come.