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Chesser Resources Limited: DEEP DIVE

Chesser Resources exploring Senegal’s golden corridor

The company aims to discover ‘golden elephants’ within the Orogenic Gold Belt in West Africa following the identification of three gold targets.
OVERVIEW: CHZ The Big Picture
Chesser’s projects are in a world-class under explored province in eastern Senegal
  • The company recently received commitments to raise $1 million for phase II drilling at the Diamba Sud Gold Project in Senegal
  • Three high-grade gold targets were identified last month - Western Flank, Northern Arc and Southern Zone - using assay results received from the final 22 reverse circulation holes
  • Chesser held around $1.163 million cash on hand at the end of the March quarter and plans to spend $225,000 on exploration and evaluation this quarter

What does Chesser Resources do?

Chesser Resources Limited (ASX:CHZ) is actively exploring for gold in eastern Senegal within the prospective Kedougou-Kenieba Inlier which straddles the borders of Senegal and Mali.

The company is focused on exploring its three gold projects – Diamba Sud, Diamba Nord and Youboubou covering more than 400 square kilometres within the west Africa Craton.

Chesser believes the combination of the underexplored and prospective nature of its land package will create opportunities for a substantial gold discovery.

Chairman Simon O’Loughlin is the founding member of O’Loughlins Lawyers in Adelaide and has been involved in the listing and back-door listing of numerous companies on the ASX and National Stock Exchange.

He is also non-executive director of BOD Australia Ltd (ASX:BDA) and Petratherm Ltd (ASX:PTR) and non-executive chairman of Oklo Resources Ltd (ASX:OKU).

Managing director and CEO Michael Brown is a qualified geologist with more than 25 years’ experience, having worked in mining and exploration in Australia, Indonesia, Chile and Argentina.

Brown has held senior executive roles with Kinross Gold Corporation (NYSE:KGC), Austral Gold Limited (ASX:AGD) and Argentex Mining.

What does Chesser Resources own?

The company’s flagship Diamba Sud Gold Project covers 53.2 square kilometres over two blocks joined by a narrow strip within the gold bearing Kedougou-Keniba Inlier to the west of the Senegal-Mali Shear Zone.

World-class deposits and mines close by include the Loulo and Gounkoto mines owned by Barrick Gold Corp (NYSE:GOLD), the Sadiola and Yatela gold mines owned by IAMGold Corp (NYSE:IAG) and AngloGold Ashanti Limited (JSE:ANG) and the Fekola mine owned by B2Gold Corp (TSE:BTO).

Its proximity to world-class deposits, combined with minimal historical exploration makes Diamba highly prospective for orogenic gold mineralisation.

This prospectivity has been established through auger drilling undertaken by the company since acquiring the properties in 2017.

The Diamba Nord project comprises two exploration tenements totalling about 242 square kilometres within the Birimian aged West African Craton, host to multiple multi-million-ounce gold operations and projects.

Exploration work to date has consisted of rock chip geochemistry, mapping and auger sampling.

Numerous lower level gold geochemical anomalies have been detected and follow-up activities are expected to take place soon.

The Youboubou project cover 1,123 square kilometres of exploration ground straddling the sediment dominated Diale-Dalema Series and the felsic volcanic sediment Faleme Series to the east.

Work to date has focused on areas of the tenement where the prospective felsic volcanics and sediments occur on the eastern flanks of the permit.

Chesser is continuously evaluating options to upgrade its gold exploration portfolio.

The company has a market cap of about $9.95 million and an enterprise value of around $8.5 million. At March 31 it had a cash balance of $1.5 million and no debt. The top shareholders hold around 43%.

Inflection points

  • Chesser plans to undertake an induced polarisation (IP) survey over priority target areas in June/July
  • Follow-up on mineralisation identified in phase I program
  • Once compilation and interpretation of drill results and geophysics is completed, the second stage of RC drilling is expected to take place

“Identified a large ring-like structure”

Chesser Resources managing director and CEO Michael Brown spoke to Proactive Investors in Vancouver about the flagship Diamba Sud Project.

He said : “We did a wide space auger drilling program across the property … did an infill auger and followed up any high-grade anomalies.

“We identified a large ring-like structure in terms of the 100 ppb plus anomalies which were in a circular form of about four kilometres wide and broken up into three anomalies – those three targets are our principal focus now for phase-one drilling.

“They are each two kilometres long and 500 metres wide – we are in a very good postal code along a structural corridor that hosts all these world-class deposits…and Diamba Sud is two kilometres to the west of this shear so it’s a relatively new belt.”


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