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Andrew Todd
Dalaroo Metals is about to fire up the diamond rigs at its Bondoukou Gold Ridge project in CĆ´te dā€™Ivoire, chasing up a substantial high-grade gold discovery made at the project last month.
The company says an initial five-hole, 1750-metre program will test the down-dip and along-strike extensions of mineralisation at its Wilfred target, where fresh results have since reinforced the maiden discovery and confirmed its high-grade hits as no flash in the pan.
The initial discovery came from two opposing maiden holes drilled to more than 200m. One returned a standout 18m at 7.31 grams per tonne (g/t) gold from 63m, including a second zone of 16m at 1.46g/t, while the other delivered a solid 23m at 2.14g/t gold from surface.
The new diamond holes will test for mineralisation down to 350m, pushing well beyond the depths reached by earlier reverse-circulation (RC) drilling.
Adding to the excitement, Dalaroo has also hit a second, significant shallow zone of mineralisation 1.25km north of the original Wilfred discovery, pointing to the potential for a much bigger system emerging at Bondoukou.
The company says it is planning a staged approach to the new round of exploration, with initial step-out holes staged in 80m strike extensions from known mineralisation. If a step-out hole is successful, another will be drilled 80m further out to define the limits of the gold-bearing structure.
A second diamond rig is expected on site by the end of this month to begin follow-up drilling at the northern discovery zone, with Dalaroo hopeful it can connect the two discoveries across a major structural ridge.
The company says after completing its current RC orientation program, it will use diamond rigs for all subsequent drilling. Core from diamond drilling will then provide crucial structural information on the geometry and orientation of its mineralisation to guide all future drilling.
Dalaroo has linked up with experienced drilling contractor Easy Drill for an estimated 20,000m of diamond drilling and two rigs at a time when rig availability in the booming West African nation is at a premium. In a move to preserve its cash, Dalaroo has structured the deal to pay for the drilling with 50 per cent cash and 50 per cent shares, although it can elect to pay a greater portion in cash.
Dalaroo appears well-funded for the campaign, with roughly $2 million in the bank and a massive 263 million in-the-money options outstanding, potentially tipping a further $13.54 million into its coffers if exercised.
The timing of the companyā€™s drilling campaign looks impeccable, set against a booming gold industry backdrop and government support in CĆ´te dā€™Ivoire. The nationā€™s gold production has skyrocketed from 13 tonnes in 2012 to a forecast 62 tonnes this year, with the government positioning to become Africaā€™s biggest gold producer by 2035. This has fuelled a rush of exploration investment, which surged 82 per cent last year to US$186 million (A$272 million).
With a high-grade discovery in the bag and a second zone 1.25km away, Dalarooā€™s Bondoukou Gold Ridge project has the makings of something big. If Wilfred can connect up along strike and keep going at depth, things could heat up very quickly.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
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