Contango Holdings PLC Garalo-Ntiela Gold Project Update (7939B)
16 February 2022 - 6:00PM
UK Regulatory
TIDMCGO
RNS Number : 7939B
Contango Holdings PLC
16 February 2022
Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural
Resources
16 February 2022
Contango Holdings Plc
('Contango' or the 'Company')
Garalo-Ntiela Gold Project Update
Contango Holdings Plc, the London listed natural resource
development company, is pleased to provide an update relating to
operations at the 100%-owned Garalo-Ntiela Gold Project in Mali
('Garalo-Ntiela').
Garalo-Ntiela Gold Project
-- Results from aero-magnetic studies have yielded multiple high-grade potential target zones.
-- 50% of the ongoing Induced Polarisation ("IP") survey has been completed.
-- IP survey, coupled with the results of the aero-magnetic
studies and historic drilling will enable the Company to finalise
its 2022 drill programme, intended to firm up the targeted resource
of 1.8Moz-2Moz gold.
-- Since its last update the Company can advise it has also now
received approaches from potential domestic and international
investors to support the future development of Garalo-Ntiela.
-- The Board believes there is significant inherent value at
Garalo-Ntiela and would expect any transaction it enters into would
need to reflect this.
-- Further announcements regarding operational advances and
strategic discussions will be made in due course.
Garalo-Ntiela 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 believes that the project could support a
processing hub, capable of supporting multiple open pit
operations.
Carl Esprey, Chief Executive Officer of Contango Holdings, said:
"Shareholders will be aware that Garalo-Ntiela has proved to be
considerably larger in terms of resource quantum than originally
modelled by our team, presenting the Company with a significant
opportunity. Given the potential scale of Garalo-Ntiela, the
Company has benefited from heightened interest in the project by
third parties. Whilst these discussions are at a relatively early
stage, it certainly highlights the optionality we have with this
project and the international interest which has been generated by
our work so far.
"With our Lubu coking coal project in Zimbabwe remaining on
track for first production at the end of the current quarter, it is
a very exciting period for Contango and I look forward to updating
the market on both projects due course."
**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
Tavira Securities Limited T: +44 (0)20 7100 5100
Financial Adviser & Broker
Jonathan Evans
St Brides Partners Ltd T: +44 (0)20 7236 1177
Financial PR & Investor Relations
Susie Geliher / Charlotte Page
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