Papillon Resources (ASX: PIR) is a West African focused gold explorer. At the Fekola gold project the company is moving towards delivering a maiden JORC Resource around mid-2012.
Fekola is strategically located on the highly prospective Senegalo/Malian Shear Zone, where in excess of 42 million gold ounces have been discovered.
Papillon Resources (ASX: PIR) has delivered further "wow" factor high grade gold intercepts from the Fekola Gold Project in western Mali, as a maiden JORC Resource moves nearer.
The most impressive intersection was; 97.6 metres at 5.41 grams per tonne (g/t) from 182.5 metres, which ended in mineralisation, highlighting that the ore body remains open at depth.
Importantly for the 97.6 metre mineralised discovery is that the final the final 32 metres delivered 11.37g/t gold to the end of the hole, providing the intriguing possibility that grades will continue to increase at depth.
Additional broad diamond drilling results include; 22 metres at 5.24g/t gold from 164.1 metres; 48 metres at 2.49g/t from 139.0 metres; and 62 metres at 2.67g/t from 182.0 metres.
The outcome of the latest discoveries propels the project to another level, with the directors and management of Papillion of the opinion that the results achieved to date at Fekola support the decision to begin preparations for a Scoping Study at Fekola.
The continuity of mineralisation at the project now extends to over 2,000 metres of strike in a north - south direction, with mineralisation remaining open along strike, in both a northerly and southerly direction, and at depth.
Well-developed drilling strategy
Papillion continues to balance the proportion of its drilling resources between infill and extension drilling at Fekola, and various locations to the north and south of the Fekola discovery.
Where the story gets even more interesting for Papillon is that air-core scout drilling just 3.5 kilometres from the Fekola Project, within the Fekola Corridor, discovered:
- 2 metres at 3.6g/t gold from 24 metres;
- 7 metres at 2.08g/t from 11 metres; and
- 3 metres at 4.93g/t from 32 metres.
The objective of this drilling was to test geochemical and geophysical targets and gain a deeper understanding of the Fekola Corridor to the north of the project.
Technical team understanding
The gold discoveries continue to give the Papillon technical team further understanding of the mineralised system with particular emphasis on the association between gold and widespread silicification, and pyrite alteration in a host sequence comprising finely laminated quartzite, fine-grained sedimentary rocks and mafic intrusive rocks.
The alteration consists of hematite, carbonate, albite, pyrite and a strong pervasive silicification producing a very typical jasperoid rock that is usually the host of the gold mineralisation.
On track for maiden resource in 42Moz shear zone
Papillion also remains on track to deliver a maiden gold resource at Fekola in mid-2012, with the latest gold discoveries further lifting the potential of this initial resource.
Fekola is located on the highly prospective Senegalo/Malian Shear Zone, where in excess of 42 million ounces of gold has been discovered. Papillon has a number of tenements, either granted or under application, which extend over 25 kilometres of strike length on this highly prospective structure
Projects in the vicinity of Fekola include Randgold Resource's (LON: RRS) 11.5 million ounce Loulo project and AngloGold Ashanti's (NYSE: AU) 13.1 million ounce Sadiola project.
Mali is Africa’s third largest gold-producer, with southern and western Mali underlain by Birimian greenstone belts similar to those in nearby Ghana. In spite of the favourable geology and demonstrated gold endowment, the country remains largely under-explored.
With these drill results, Papillon has again picked up the pace at Fekola delivering investors a growing bounty in a gold system that looks both significant and in a zone known for massive gold deposits. With a likely growing resource base, current valuation is not high relative to peers.
Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.