Boss holds a 49% interest in a joint venture with Teranga over the Golden Hill and Gourma gold projects in Burkina Faso, West Africa.
The results relate to a phase II diamond drill program at C-Zone prospect on the Golden Hill property where high-grade gold intersections were identified.
Boss Resources’ managing director Duncan Craib said: “Boss is a direct beneficiary of Teranga’s exploration spend which continues to add value to the Golden Hill project.”
High-grade mineralisation at surface and at depth
High-grade gold was evident at the surface and at depth with results including 7 metres at 21.86 g/t gold from 26 metres and 10 metres at 6.03 g/t from 91 metres.
Teranga chief executive officer Richard Young said: “The phase II drill results elevate C-Zone to the category of advanced exploration prospect from a drill target.
“Significantly, these results substantiate the continuity of gold mineralisation in all dimensions with room to expand mineralisation laterally and to depth.”
DFS can elevate Teranga’s stake to 70%
Teranga manages the joint venture and is funding all exploration on the project up to the completion of a definitive feasibility study (DFS) and decision to mine.
On delivery of the DFS, Teranga’s interest in the joint venture will increase to 70% and they retain the rights to acquire an additional 10% in the joint venture for $2.5 million.
Option to be free carried
Upon completion of the DFS but prior to a decision to mine, Boss may elect to convert the remainder of its interest to a 1.5% Net Smelter Return.
Alternatively, the company shall be free carried to a decision to mine and will then be required to contribute on a pro-rata basis.