TIDMCGO
RNS Number : 6505Q
Contango Holdings PLC
29 October 2021
Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural
Resources
Contango Holdings Plc ('Contango' or the 'Company')
29 October 2021
Garalo-Ntiela Gold Project Update
Highlights:
-- Airborne magnetics have confirmed that Garalo-Ntiela Project
hosts similar tectonic structures, which support a number of
multi-million ounce deposits in the region
-- Two prominent structures have been confirmed, running NE-SW
and NW-SE, along with a new 'dome' structure in the north-west
corner
-- Drilling to commence on G1 and G3 structures Q4 2021,
targeting NI 43-101 Resource of up to 2Moz
-- Near term production scenario continues to be optimised
Contango Holdings Plc, the London listed natural resource
development company, is pleased to provide an update on recent
activities at the Garalo-Ntiela Gold Project Area ('the Project')
in Southern Mali.
Aeromagnetics and airborne geophysics for the collection of
magnetic and radiometric data has been completed and analysed, with
the objective of informing direct mine planning activities and
supporting the Project's accelerated development into production.
These studies have built on the existing drill data on the Project,
the basis for the March 2021 NI 43-101 Independent Technical
Report, which highlighted the potential for the Garalo licence to
host a 2Moz Resource.
The survey also targeted some untested areas within the Project
area, particularly at Ntiela where exploration work earlier in 2021
yielded very encouraging results. The Company believes the results
of the survey reconfirm the expected extensions of the G1 and G3
deposits, the main targets used to support the potential 2Moz
resource.
The Company will now focus on a short but targeted drilling
campaign on the G1 and G3 deposits to test interpretations to depth
alongside infill drilling, to support a formal enhanced NI 43-101
Resource Report.
The expectation remains that Garalo-Ntiela will merit the
development of a processing hub capable of supporting multiple open
pit operations given the excellent proximal infrastructure,
historical exploration and the orebody's near surface location.
However, the Company is continuing to focus and refine its plans
for a smaller standalone 30,000oz per annum heap leach gold
operation, which is expected to generate significant cashflow for a
modest CAPEX requirement.
Carl Esprey, Chief Executive Officer of Contango Holdings, said:
"The aeromagnetic and airborne geophysics work conducted during
2021 has reinforced our belief in the potential of the
Garalo-Ntiela Gold Project to be developed into a profitable gold
mine. Indeed, the results from the G1 target clearly demonstrate
geological similarities to nearby producing mines.
"This recent programme was devised to provide valuable
geotechnical data to direct our broader mine planning activities,
whilst also providing further information to support a proposed
initial 30,000oz per annum heap leach gold operation. The positive
results have led us to embark on additional exploration with the
objective of defining a 2Moz resource as indicated in the NI 43-101
Independent Technical Report delivered earlier this year. We look
forward to providing further updates in due course as our
activities in Mali increase over the coming weeks and months."
Click on, or paste the following link into your web browser, to
view the associated PDF document with pictures included:
http://www.rns-pdf.londonstockexchange.com/rns/6505Q_1-2021-10-28.pdf
Project Background
The combined Garalo-Ntiela Project covers an area of 161.5km(2)
and is in the department of Bougouni within the Sikasso region in
southern Mali, 200km south-south-east of Bamako and close to the
Guinea border. The Project is surrounded by several
multi-million-ounce gold deposits and the region is home to some of
the world's leading gold miners, which has helped to establish Mali
as the third largest gold producer in Africa.
An NI 43-101 Independent Technical Report delivered in March
2021 highlighted the potential for the Garalo to have up to 2Moz
Resource. The Company believes that there is still room for
improvement over and above this threshold as, in addition to G1 and
G3 targets (the basis for 2Moz), numerous other clusters of
anomalous zones with potential for gold discovery have been
identified in both the Garalo and contiguous Ntiela permit area.
With this background and given the excellent infrastructure in the
vicinity, historical exploration, and the deposit's surface
location, the Company aims to establish a processing hub in the
region, capable of supporting multiple open pit operations
targeting initial production of gold in the near term in
conjunction with an exploration programme including expansion
drilling.
Figure 1: Geophysical interpretations identified two predominant
structural fabrics running NE/SW and NW/SE as well as an
interesting 'dome' structure in the NW corner (which has been
interpreted as an intrusive body around which are metamorphic
aureole zones). An interpretation of a NE shear has also been made
which has reactivated folds in this area.
Figure 2: Re-activated folding associated with metamorphic
aureole and with positive results from termite sampling programme
show in the Ntiela licence. G1 target demonstrates shears similar
to the Morila Gold Mine in Mali, which has produced over 7.5Moz
gold since 2000.
The 2021 aeromagnetics and airborne geophysics campaign was
devised to better define the extents and characteristics of the
orebody, considering the significant increase in resource quantum
that is now contemplated at Garalo. The Company continues to
advance the development of a 30,000oz per annum heap leach
operation from the shallow oxides given the high margins and low
capex for development. Given the dramatic increased resource
potential highlighted in the NI 43-101 Independent Technical Report
released in March 2021, the Company is also likely to undertake a
drilling programme in parallel to help realise and optimise the
asset's full potential, as Contango looks to establish a large
standalone gold mine with multiple open pit operations across both
permit areas.
**ENDS**
For further information, please visit
www.contango-holdings-plc.co.uk or contact:
Contango Holdings plc E: contango@stbridespartners.co.uk
Chief Executive Officer
Carl Esprey
Brandon Hill Capital Limited T: +44 (0)20 3463 5000
Financial Adviser & Broker
Jonathan Evans
St Brides Partners Ltd E: info@stbridespartners.co.uk
Financial PR & Investor Relations
Susie Geliher
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