Exploration

In West Africa, the third quarter of the year traditionally marks a pause in field activities due to the annual rains, and exploration teams use this period to concentrate on data integration, interpretation and modelling to generate field programmes for the next season.

In Senegal, detailed core logging at Massawa was completed and a geological model developed for the northern 3.75 kilometres of an overall 6.5 kilometre long mineralised structure. Two main zones of mineralisation have been further refined based on the latest geological model:

• Central zone: strike length of 1.5 kilometres with an average width of 15 metres and grade of 3.24g/t, (based on 14 holes). Mineralisation over the first 1 kilometre is associated with an altered and sulphidised gabbro, which has intruded along the main structure, while the remaining 480 metres is typical shear zone hosted, where a structure has developed at the contact between a package of volcaniclastics and sediments. A lapilli tuff acts as a prominent marker horizon in the hangingwall of mineralisation. 

• Northern zone: this has now been divided into two zones, one with a strike length of 1.11 kilometres with an average width of 10.13 metres at 3.3g/t (based on 12 holes) and a further zone with a strike length of 0.77 kilometres and average width of 15.85 metres at 4.06g/t (based on 5 holes). Mineralisation in both zones is similar to the 480 metre shear zone hosted central zone. 

A 5 000 metre diamond drilling programme has started to infill the current drill spacing to 100 metres by 50 metres and provide the data necessary to complete a scoping study in Q1 2009. Tenders are also out for a 35 000 metre feasibility drilling programme which, subject to a successful scoping study, is expected to be completed in 2009.

At Loulo, following the success of defining a small oxide resource at Loulo 3 South (S) the team has gone on to deliver a further small resource at Loulo 3 South (N) which is being modelled and scheduled into the current mine plan. The Loulo 3 target, albeit relatively small at surface, is an indicator of the potential of the Yalea structure, and this field season will see a concerted effort to advance the interpretation and understanding of the relationships between the existing surface targets: Yalea, P125, Loulo 3 North, Loulo 2, Loulo 1, P1 Baboto and Baboto, in order to provide further open pit ounces and develop conceptual targets along this structure, especially at depth where the structure remains untested. At P129, a folded and mineralised quartz tourmaline unit, similar to Gara, has been confirmed by reconnaissance diamond drilling: P129 QTDDH01 returned 4.85 metres at 2.53g/t from 71.70 metres and 2.00 metres at 1.40g/t from 99.30 metres.

In the southern part of the Loulo mining permit at Gounkoto, results from a new trench have returned 35.75 metres at 10.66g/t including 21.20 metres at 16.47g/t, the mineralisation is hosted in strongly altered pink quartzite and breccia. This confirms results from trench FRT03: 9.70 metres at 15.26g/t excavated 1 kilometre to the NNW. Together with rock chip sampling, pitting and previous RAB drilling, mineralisation has so far been defined over a combined strike length of 1.3 kilometres; open in all directions. The current interpretation for Gounkoto is that a major NNW structure is the main mineralised target; however both N-S and NE-SW structures play an important role in creating dilation and subsequent gold mineralisation. At Toronto (named after the nearby village: Torondinloto) RAB drilling, trenching and sampling of artisanal workings have so far delineated a 1 kilometre long mineralised structure. The structural trend is NNW and regionally coincides with the structure which hosts Faraba. Gold mineralisation is associated with altered pink quartzite and breccia, similar to Gounkoto. A 6 000 metre RAB drilling programme has started to further test both of these targets prior to reconnaissance diamond drilling in 2009.

At Faraba, logging and interpretation has resulted in the delineation of an eastern and western zone of mineralisation which extends over 800 metres in strike in the gap area. However, mineralised intersections within these zones are complex, generally low grade with spikes of high value and discontinuous along strike and down dip. Work on this target will be placed on hold in the short term while we attempt to build a centre of gravity in terms of resource potential from other targets, such as Gounkoto and Toronto.

More regionally, further interpretation of the EM geophysical survey is continuing to develop new ideas and identify zones of interest across the district. A number of linear anomalies in the data coincide with known mineralised structures on the permit as well as the Gara and Yalea orebodies. Interpretation is identifying new structural domains and the presence of deep intrusives leading to a greater understanding of geological controls. A prospectivity analysis is being conducted to prioritise targets for follow-up work across the greater Loulo district. Kolya and Mananord are priority targets in the Bambadji permit. Kolya is a 2 kilometre long, folded and quartz veined quartz tourmaline unit similar to Gara. Previously this target was tested by 4 RC holes, all returning gold mineralisation (4 metres at 1.40g/t, 6 metres at 3.60g/t, 3 metres at 2.50g/t and 5 metres at 3.94g/t. Mananord is a 8.7 kilometre long structural corridor, anomalous in gold, with contrasting geological units and intrusives. Very little follow-up work has been conducted and therefore RAB drilling has started on both target areas to delineate locations for reconnaissance diamond drilling in Q1 2009.

At Morila, we continue to analyse the data and develop models for testing but have postponed drilling until 2009.

In Côte d’Ivoire, the emphasis within the Nielle permit has shifted from the resource conversion work on the Tongon deposit to evaluating satellite targets. Desktop studies were completed on Koulivogo, Yvette-Nafoun and Soloni which will be the next targets for follow-up, due to their favourable geology, structural setting and surface gold anomalism. This is in addition to Tongon South and Poungbe where previously reported first pass diamond drilling returned positive results. At Tiasso, on the Boundiali permit, results from diamond drilling yielded narrow low grade intersections, reducing the prospectivity of this target. However Sani is now taking the lead with positive trench results over 1.5 kilometres (15 metres at 3.25g/t, 14 metres at 3.10g/t and 4.0 metres at 1.38g/t).

In Burkina Faso, an updated geological model has been finalised for Kiaka and we are in the process of completing a new geological estimate and scoping study for the deposit to further review the economic viability of the project.

In Ghana, two new permits consolidate our position in the north of the country and stream sediment surveys confirm gold anomalism coincident with large regional scale fold structures in volcano-sedimentary belts.

In Tanzania, we have returned the majority of our permits to either the government or joint venture partners following extensive exploration. We are taking cognisance of results from research over the Tanzanian Craton and integrating this information into a new generative study.