12th Nov 2013 09:46
LONDON (Alliance News) - Sovereign Mines of Africa PLC Tuesday said its Sovereign Mines of Guinea unit has won a new exploration concession that borders the south of its Mandiana-Magana gold concession in the country, a win it expects to significantly boost the gold strike at the site.
The new concession covers an extension of a gold mineralisation area that forms the main part of its existing gold resource.
"The new gold exploration concession covers an area of 181 square kilometres but, based on the company's current assumptions, has the potential to effectively double the potential strike of the seven-kilometre Woyondjan-Yagbelen gold mineralised corridor within the Madiana-Magana project area to the south by adding an additional eight kilometres," the company said in a statement.
In October, Sovereign Mines announced a maiden inferred gold resource of 600,000 ounces of gold for the Mandiana-Magana project, including 420,000 ounces of gold with an average grade of 2.3 grammes a tonne gold.
"We are delighted to acquire this key exploration area which now offers the exciting opportunity to explore the interpreted southern extension of the Yagbelen and Wyondjian mineralised corridors. The more we drill on the Mandiana-Magana gold property the more ounces of gold we are adding," Exploration Director John Barry said in the statement.
"The addition of this new concession has the potential to be transformational for the project and could well provide the "missing piece" to the jig-saw at Mandiana-Magana," he added.
The new concession has never been drilled, the company said, but that was also the case with the original concessions at Mandiana-Magana.
Sovereign Mines of Africa shares were up 18.1% at 3.1 pence Tuesday morning, one of the leading gainers on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
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