Papillon Resources increases Fekola Resource estimate

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THE DRILL SERGEANT: Papillon Resources (ASX: PIR) has announced an updated JORC-compliant Mineral Resource Estimate for the company’s Fekola project, located in south western Mali.

 

Project location map. Source: Company announcement

 

The updated Resource Estimate is for 54.97 million tonnes averaging 2.38 grams per tonne gold for a contained 4.21 million ounces of gold at a lower cut-off grade of 1g/t gold.

The Estimate comprises 44.31 million tonnes averaging 2.46g/t gold for a contained 3.5 million ounces of gold classified in the Measured and Indicated Resource categories, which represents approximately 83 per cent of the Mineral Resource Estimate.

The Inferred Resources consist of 10.7 million tonnes averaging 2.1g/t gold for a contained 0.7 million ounces of gold.

The MRE incorporates the most recent set of results from the 2013 drilling campaign, which has been conducted over a strike length of approximately 3.8 kilometres.

Papillon said this represents only a small portion of the strike extent of the Fekola Corridor.

Mineralisation is said to remain open at depth and along strike to both the north and south.

“The updated Mineral Resource Estimate is another significant milestone in accelerating the development of the Fekola project, again highlighting the world class attributes of the project,” Papillon Resources managing director Mark Connelly said in the company’s announcement to the Australian Securities Exchange.

“We believe that it provides an excellent platform for future growth as well as greatly enhancing Papillon’s ability to fulfil its strategic objective of becoming a West African gold producer in the near term.”

Papillon indicated the ongoing 2013 drilling campaign at Fekola will continue to focus on aggressively expanding the MRE with intentions of extending the mineralisation along strike and at depth as well as testing the numerous priority targets within the Fekola Corridor and the surrounding area.

The company will incorporate the updated MRE into a Pre-Feasibility Study, which the company expects to be completed during the second quarter of 2013.