Roscan Gold (ROS.V) is on a roll as the assay results of an additional four holes continue to confirm the continuity of the high-grade gold mineralization at the Mankouke South target, part of the Kandiole gold project in Mali. All four holes intersected mineralization and whereas hole 28 was just the warm-up hole with 1 meter containing 0.54 g/t gold as the three subsequent holes are phenomenal.
Having a 62 meter interval with an average grade of 4.84 g/t (including 7 meters of 12.7 g/t gold and 13 meters of 10 g/t gold – indicating the remaining 42 meters contain 1.93 g/t gold, a grade that will make any open pit mining operation in West Africa work) starting at a depth of 39 meters after already having intersected 5 meters of 2.56 g/t gold at 3 meters, and followed up by an additional 31 meters at 2.61 g/t gold is just phenomenal.
And as you can see in the table above, it wasn’t a one-hit wonder. The other two diamond holes that were reported on in the update were very solid as well, and it’s interesting to note CEO Sangmuah noted the current interpretation of the drill data indicates there is a northern plunge, similar to other major deposits in the area. With these types of drill results, we think it’s only a matter of time before either B2Gold (BTG, BTO.TO) or IAMgold (IAM.TO, IAG) will make a move to consolidate the greater Kandiole area into their operations.
And fortunately for Roscan the market does seem to get excited about these new drill results. Hot on the heels of the assay results Roscan announced a warrant-less C$5M capital raise which immediately had to be upsized to C$7.5M. This, in combination with the warrant exercises this year and next year very likely means Roscan is now fully funded until the end of 2021. The total trading volume of in excess of 19M shares last week also provided an excellent opportunity for owners of warrants that are expiring in two months to start exercising those as the market is clearly ready to absorb any volume that might become available should investors have to sell some shares to fund their warrant exercise.
Edit: Roscan Gold was halted earlier this morning.
Disclosure: The author has a long position in Roscan Gold. Roscan is a sponsor of the website.