Amani Gold (ASX:ANL) has reported on an additional 8 Reverse Circulation holes which have been drilled at the company’s Kebigada prospect which is a part of the Giro Gold project in the DRC.
With drill intervals of 9 meters at 10.44 g/t gold and 65 meters at 7.73 g/t gold, Amani has discovered its best intercept to date, and this definitely increases the confidence of the company in the mineralization at Giro, where a maiden resource estimate will now be completed at Kebigada. Whilst the recently reported drill results were part of an infill drill program starting from surface, the high-grade potential at Kebigada has now definitely been confirmed and the company’s management is already talking about a potential underground zone, but more work will obviously have to be completed.
The recent drill results have definitely increased the potential of the property, but as we pointed out in an earlier article (archived HERE), it’s a pity the project is located in the DRC, and as such, Amani Gold will continue to trade at a discounted value (which is a pity as the company has a real shot at defining at least 5 million ounces on its property). Fortunately the company was able to raise A$25M from Chinese investors. Amani will issue 500 million new shares at A$0.05 per share to Luck Winner Investment, a special purpose vehicle for a Chinese investment group.
The A$25M will be very useful for the next drill program which will drill-test the anomalous gold grades in the vicinity of the Kebigada gold zone. Drilling at Kebigada has now been completed, and the maiden resource estimate will be completed next month.