Roscan Gold (ROS.V) has provided an update on its Kabaya exploration program as it released assay results from an additional 42 holes on its Kabaya target, which was acquired less than a year ago. Since acquiring the asset, Roscan has completed 52 holes and all of those holes have actually intersected gold mineralization.
As the majority of these holes were aiming to expand the existing resource, we can now indeed expect a boost in both the tonnage and ounces as the first batch of drill results confirmed the potential to add tonnes at depth while the recently released 42 holes have provided additional confirmation the mineralization continues to run deeper while the strike length has been extended to 600 meters. While building tonnage is important, it’s also interesting to see the company intersected a bunch of high-grade mineralization which could provide a boost to the average grade as well.
Roscan Gold is now aiming to publish an updated resource estimate on the Kabaya project by the end of this year, and the 140,000 ounces of gold (105,000 ounces in the indicated category and 35,000 ounces in the inferred resource category) will likely be multiplied and that will obviously have a positive impact on the potential future development of the project further down the road.
Disclosure: The author has no position in Roscan Gold anymore. Please read our disclaimer.