Papillon encounters further high-grade gold at Fekola

THE DRILL SERGEANT: Papillon Resources (ASX: PIR) has received the latest results from a 2011/2012 drilling program undertaken at the company’s Fekola project, located in south western Mali.

The Project currently hosts a Mineral Resource Estimate comprising 40.1 million tonnes at 2.4 grams per tonne gold for a contained 3.14 million ounces of gold at a lower cut-off grade of 1.0 grams per tonne gold.

 

Regional geology, gold deposits and Papillon tenements. Source: Company announcement

 

Papillon has received the results of an additional 59 diamond drill holes, which it considers to have further demonstrated the continuity of gold mineralisation, in terms of thickness and grade, between the previous broader spaced holes within the resource area.

Thick zones of high grade mineralisation have been recorded in this drilling with better intersections including:

–    66 metres at 8.06 grams per tonne gold;

–    105m at 4.88g/t gold;

–     107m at 3.84g/t gold; and

–    64m at 5.12g/t gold;

The company outlined the results of this drilling program are to now be incorporated into a revised MRE with a view to upgrading the resource classification of the current, predominantly Inferred MRE to the higher confidence categories.

The revised MRE is anticipated to be completed in the first quarter of 2013 and will form the basis for the Project’s Pre-Feasibility Study.

“The 2012/2013 drilling program is now underway, with three diamond drill rigs currently in operation, and a further rig due to arrive on site this week,” Papillion Resources explained in its ASX announcement.

“This program will be focussed on aggressively expanding the MRE (extending the mineralisation along strike and at depth) and testing numerous priority targets within the Fekola Corridor.”

Papillion recently recieived positive results for a Scoping Study, which demonstrated the Fekola project can support an average annual production profile of 231,000 ounces over a minimum eleven year mine life with operating cost estimates averaging US$596 per ounce over the life of mine.

The company said it will continue to focus on rapidly advancing the exploration, appraisal and potential development of the Fekola project.