LONDON (Alliance News) - Alecto Minerals PLC saw its shares rise early Friday after it said the independent mineral resource estimate for a key area on its Kossanto gold project in Mali had been raised 28% to 247,000 ounces following a drilling programme.
The mineral exploration company focused on Africa said it had recently completed reverse circulation drilling at Gourbassi West, which together with Gourbassi East forms one of two main target areas at Kossanto. It drilled six more holes for 864 metres.
The updated mineral resource estimate for Gourbassi is 6.72 million tonnes at an average grade of 1.14 grammes per tonne of gold for 247,000 ounces of gold with a 0.5 gramme per tonne gold cut-off. The independent consultant providing the mineral resource estimate was Wardell-Armstrong International.
"Since acquiring the Kossanto Project less than a year ago, we have increased the Inferred Mineral Resource estimate by 131%, demonstrating our determination and ability to swiftly deliver ounces and increase the project's economic potential. These additional ounces have been added at a direct cost of just USD4.70 per ounce and confirms the company's ability to add value at low cost," Alecto Chief Executive Mark Jones said in a statement.
Jones said the company would now test for extensions to the resource zone at Gourbassi, and it is confident that the mineral resource estimate will be further increased.
Alecto Minerals shares were up 7.9% at 0.89 pence early Friday.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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