Chesser Resources Limited (ASX:CHZ) held around $1.163 million cash on hand at the end of the March quarter having spent $473,000 on exploration and evaluation work during the three months.
The company’s focus during the reporting period to March 31, 2019, remained on advancing its Diamba Sud Gold Project in Senegal with the first phase completed of a planned two-phase reverse circulation (RC) drilling program testing high-grade gold auger anomalies.
Chesser expects a steady stream of results from phase I with assays pending while an induced polarisation (IP) geophysical survey was expected to begin over the Northern Arc target by the end of April.
This will assist with the interpretation of results and the search for possible host structures.
Following completion of the interpretation of drill results and geophysics, the second stage of RC drilling is expected to begin.
Assays from the first 12 holes of phase I drilling returned the following results:
- 18 metres at 5.61 g/t gold from 6 metres, including 8 metres at 11.84 g/t from 14 metres;
- 10 metres at 2.72 g/t from 19 metres, including 1 metre at 16.30 g/t from 23 metres;
- 8 metres at 3.48 g/t from 34 metres; and
- 11 metres at 1.16 g/t from 19 metres.
The most significant gold intersections come from saprolitic material at very shallow levels with the high-grade mineralisation intersected at 8 metres transitioning to fresh rock before being terminated due to excess water ending in mineralisation.
Significantly, IAMGOLD Corp (NYSE:IAG) has recently increased the resource at its nearby Boto project to 2.6 million ounces.
Boto is interpreted to sit in the same western corridor of the Senegal-Mali shear zone that Diamba Sud tenement covers.
During the quarter, and upon the approval of shareholders, Chesser issued 2.92 million shares to directors, raising funds of $110,960.