Work is also continuing on its West African joint venture projects with further drilling planned along strike at Ouarigue South Prospect within the Ferkessedougou North Gold Project in Cote d’Ivoire after extending the gold system during the March quarter.
The project, which is a JV with Resolute Mining Ltd (ASX:RSG), underwent a nine-hole diamond drilling program which confirmed a continuous, easterly dipping gold mineralised zone extending from surface to a vertical depth of 175 metres.
Better intersections included 51 metres at 1.27 g/t gold from 169 metres, 14 metres at 10.74 g/t from 33 metres, 33 metres at 1.62 g/t from 28 metres and 17.15 metres at 1.39 g/t from 110.85 metres.
Owing to the COVID-19 pandemic restrictions, the planned power auger and air core drilling programs that were set to begin after the Ferkessedougou North diamond drilling program was completed have been suspended.
Raising up to $9 million
Predictive recently received binding commitments for a conditional placement to raise up to $6.9 million, as well as announcing a non-renounceable entitlement offer to raise up to an additional $2.1 million for a total of up to $9 million.
This will provide the strongest financial footing the company has ever enjoyed, ensuring it is well funded to carry out exploration at the North-East Bankan gold discovery within the Kaninko Gold Project in Guinea.
In April, Predictive’s first round of drilling intersected 44 metres at 2.06 g/t gold, including 18 metres at 2.97 g/t gold at the Bankan Creek prospect uncovering a new shallow gold discovery.
Managing director Paul Roberts said: “Our first round of shallow drilling at NE Bankan has uncovered a new, very wide, shallow gold discovery in the prolific Siguiri Basin, with thick intersections and some excellent grades, starting almost at surface and open in all directions, all of which points to the potential for Kaninko to evolve into a future large, high-margin gold mining opportunity.
“This fundraising is a transformational step-change for Predictive, setting us up for the largest drilling program in the company’s history, and putting us on a pathway towards a targeted maiden resource estimate on Kaninko by mid-2021.”
Use of funds
Funds raised in the capital raising will be applied to:
- A substantial drill program focused on the recent discovery at NE Bankan with additional drilling on nearby prospects. The program will map out the full extent of NE Bankan’s surface footprint, explore the full width of the gold mineralised system and drill it at depth, and will consist of at least 25,000 metres of RC drilling, 5,000 metres of diamond drilling and 20,000 metres of auger drilling
- Targeting a maiden resource estimate at NE Bankan by mid-2021;
- A metallurgical test-work program on the Kaninko project;
- Ongoing early-stage exploration on the company’s other 100% owned Guinea exploration portfolio;
- Joint venture contributions to its projects in Cote d’Ivoire; and
- Working capital, including costs of the capital raising.
“Significant gold discoveries”
Presenting at the EMEA Conference this week, Roberts highlighted Predictive’s work across West Africa over the past 10 years in its efforts to build a large landholding.
During this time, the company has made ‘significant' gold discoveries throughout its 18 projects totalling 6,000 square kilometres in Guinea (Kaninko Gold Project), Cote d’Ivoire (Ferkessedougou North) and Burkino Faso.
These discoveries include the Bongou gold deposit (184,000 ounces at 2.6 g/t gold), Nyangboue (30 metres at 8.3 g/t gold and 28 metres at 4.04 g/t) and Ouarigue South.
Predictive now remains focused on its flagship and new greenfield gold discovery at the Kaninko Gold Project with 50,000 metres of power auger, RC and DD drilling underway.