LONDON (Alliance News) - Alecto Minerals PLC saw its shares jump Wednesday after it reported an 80% increase in the resources estimate for its Kossanto gold project in Mali, the result of recent drilling at two of the three main target areas at the project.
In a statement, the company said that Wardell Armstrong International had updated the independent inferred JORC-compliant resource estimate to 5.04 million tonnes, grading at 1.19 grammes per tonne gold for an aggregate 193,000 ounces of gold with a cut-off grade of 0.5 grammes per tonne.
The resource increase comes after drilling at the Gourbassi East and Gourbassi West target areas.
Alecto said the updated resource estimate includes a maiden inferred resource estimate for Gourbassi West and has defined gold in two zones over a total strike length of more than 1,000 metres at that target area.
"The inferred resource estimate of 193,000 ounces of gold has been delineated over two (Gourbassi East and West) of the three main target areas at the Kossanto Project, highlighting the continued potential for further significant resource upside," Alecto Chief Executive Mark Jones said in a statement.
"The two target areas which comprise the current Gourbassi resource are just 3.7 kilometres apart and therefore, from a practical mining perspective, can be viewed as a single project. The combined resource is near surface (less than 100 metres deep) and we believe is likely to provide no significant metallurgical challenges," Jones added.
Alecto is now completing an infill drill programme which is seeking to demonstrate continuity between the sites which would allow it to define one larger target zone at Gourbassi with increased resource and tonnage.
"Excluding our highly prospective Massakama prospect to the west of the Kossanto Project licence area, the value of the estimated in-situ gold is now over USD250 million which again underpins the economic potential of the Kossanto Project as we continue to explore and unlock its inherent value," Jones said.
Alecto Minerals shares were up 12.8% at 1.325 pence early Wednesday.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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