Polymetals Resources completes busy June quarter with ASX debut and phase two drilling
The June quarter heralded Polymetals Resources’ ASX debut and the start of a phase two drilling program.
West African-focused explorer Polymetals Resources (ASX: POL) rounded out a busy June quarter with an ASX debut and commencement of a phase two exploration program at the Alahiné gold project in Guinea’s Siguiri Basin.
The company embarked on 5,100m of combined aircore and reverse circulation drilling to test artisanal gold diggings enclosed by 40 parts per billion gold-in-soil contours at the East Alahiné North, Central and South prospects.
The contours were generated from two previous whole of licence geochemical soil sampling campaigns.
A total of 112 holes along 14 drill fences is being completed by Australian-based West African contractor Target Drilling.
Work kicked off during the quarter with testing of the lateral and vertical extent of a previously-drilled hole hosting a gold zone and shallow Siguiri-style oxide gold potential across the Alahiné licence.
A senior Polymetals geologist has been stationed in West Africa to manage the phase two program, and will be assisted by four local geologists and the company’s country manager.
All samples generated will be analysed by SGS at its Bamako facility in Mali.
Alahiné (and the neighbouring Mansala licence) joined the Polymetals portfolio in January following the company’s acquisition of private entity Golden Guinea.
Siguiri Basin home to several gold mines
Guinea’s Siguiri Basin occupies the north-eastern corner of the country and is home to several large active gold mining operations.
Siguiri Basin is known for its widespread gold anomalism and is broadly covered by exploration or exploitation tenure, with little vacant land available for new participants.
The region is considered relatively immature from an exploration perspective, producing over 500,000 ounces of gold per year.
AngloGold Ashanti’s (ASX: AGG) Siguiri gold mine is the region’s largest gold operation. It’s located 37 kilometres west of Polymetals’ exploration licences.
The mine has produced more than six million ounces over its 20-year life.
ASX listing
Polymetals listed on the ASX in June following a $5.2 million initial public offering which issued 26 million new shares at $0.20 each.
The capital raising boosted the company’s total shares on issue to 79.44 million, backed by resource-focused funds as well as institutional, sophisticated and retail investors.
The listing marked a “major milestone” for Polymetals as it advances towards gold explorer and producer status.
Polymetals’ board comprises non-executive chairman David Sproule, and independent non-executive directors Dr Christopher Johnston and Christopher Schroor who have combined expertise in gold exploration, mining, production and corporate management.