Polymetals Resources launches IPO to hunt down ‘large’ gold inventory in Guinea

Polymetals Resources is setting out to raise $5 million in its IPO to advance exploration of its two promising gold projects in Guinea’s Siguiri Basin.

In its IPO, Polymetals is offering 25 million new shares at $0.20 each and plans to trade under the ticker POL when listed.

Over the past 20 or 30 years, the West African Craton in Guinea has become one of the largest gold producer regions in the world.

The company’s chairman, David Sproule, began investing in Guinea in 2017. He has been involved in Australian mining for 35 years and, through his private groups, has developed eight successful gold projects.

Polymetals comes to the market with two exploration licences: Alahiné (64 square kilometres) and Mansala (48sq km).

The large Siguiri gold mine having produced 6.6Moz and owned by AngloGold Ashanti (ASX: AGG) is located 37km to the southwest of Polymetals’ ground.

Both projects have been worked by artisanal miners

Both licence areas controlled by Polymetals have hosted many historic and current small-scale artisanal gold workings.

Previous field activity at Alahiné consisted of two soil sampling programs and one program of reverse circulation drilling.

“Significant” gold anomalism has been detected at both projects with a peak soil value of 93.98 grams per tonne gold obtained at Mansala.

Some 18sq km or 16% of the combined licence areas hosts more than 40 parts per billion gold anomalism.

Polymetals considers this extent of anomalism as geologically exceptional with numerous gold targets to be tested.

In 2019, 21 reverse circulation holes were drilled for a total 2,406m at Alahiné to depths typically between 100m and 200m down hole.

One hole, AHR014, had seven mineralised zones over 51m with the best zone from 89m returning 12m at 3.09g/t. The hole ended in mineralisation.

Mansala, lying to the south of Alahiné, contains several hundred artisanal pits and shafts.

Systematic exploration at Mansala began in December with a program of reconnaissance soil chemistry.

‘Numerous’ gold anomalies will be targeted

Some 10.4% of the area at Mansala surveyed returned gold values in excess of 40ppb, with 11 samples assaying more than 1,000ppb and included notable grades of 93.98g/t, 6.03g/t, 5.85g/t and 2.91g/t.

Mr Sproule says in the prospectus that the money raised through the IPO will be used to resume drilling and focused soil sampling within both licence areas, targeting the “numerous” soil gold anomalies and follow up of the 2019 drill intercepts.

He said initial testing indicates potential for Alahiné and Mansala to hold “significant geological potential for the discovery and delineation of a large gold inventory”.

“The board and management have a practical approach to the mining industry and are optimistic that the licences may support the establishment of a large long-term gold mine,” Mr Sproule added.

The Sproule family will, after the IPO is filled, retain between 38% and 43% of Polymetals.

The IPO is not underwritten and is expected to close on 28 May.