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Boss Resources' 49% interest in Burkina Faso gold projects paying dividends

High-grade gold was evident at surface and at depth with results including 7 metres at 21.86 g/t gold from 26 metres.
Picture of gold veins in mineralisation
Boss is a direct beneficiary of Teranga’s exploration spend which continues to add value to the Golden Hill Project

Boss Resources Ltd (ASX:BOE) could benefit from exploration results released by Teranga Gold Corp (TSX:TGZ).

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. 

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