Korhogo Project

The Korhogo Project comprises a 380-square kilometer exploration permit in the northern region of Côte d’Ivoire. The Korhogo Ouest permit is located along the Banfora greenstone belt, which hosts the multi-million ounce Tongon and Banfora gold deposits.

Following an initial soil sampling and airborne magnetic survey covering the northern part of the property in late 2016 and early 2017, trenching and RC drill programs were initiated. Trenching was completed in the second quarter of 2017, while the RC program commenced in July. The program was designed to provide a preliminary test of some soil sample anomalies. At the end of the third quarter of 2017, a total of 116 RC holes (over 12,200 meters) had been drilled.

Trenching Program

Of the 11 trenches completed, seven returned anomalous gold values (see Figure 1). Among these, KOTR17-0003 returned a grade of 8.84 g/t Au (11.46 g/t Au uncut) over 14 meters, including 19.55 g/t Au (25.68 g/t Au uncut) over 6 meters along the south wall of the trench. The north wall of the two-meter wide trench was immediately resampled in order to confirm results and returned 9.19 g/t Au (9.52 g/t Au uncut) over 13 meters. The mineralized zone (dubbed Chigata) is hosted in a moderately east-dipping sheared and sericitized granodiorite containing quartz veining. In addition, KOTR17-006 returned 0.63 g/t Au over 11 meters, KOTR17-0007 returned 0.75 g/t Au over 7 meters, and KOTR17-0011 returned 2.47 g/t Au over 8 meters. These four trenches are spread over an area of 7 kilometers by 5 kilometers, and each tested separate soil sample anomalies.

Figure 1 - Location of Korhogo Trenching and RC Drill Highlights

Korhogo Project Map 1

RC Drill Program

RC drilling was carried out to provide a first indication of the potential of these zones. At Chigata, three sections were completed over KOTR17-0003 and 100 meters on each side of the trench. Significant gold values were obtained from four holes (Table 1), two under the trench (Figure 2), one 100 meters north of the trench (Figure 1) and one 250 meters south of the trench (Figure 1). Anomalous values were obtained in all 12 holes that crossed the altered and sheared zone.

Table 1

Hole No. From (m) To (m) Length (m)1 Au (g/t)2
KORC17-0001 15 24 9.0 5.96
KORC17-0002 57 60 3.0 5.23
KORC17-0010 101 109 8.0 4.36
KORC17-0104 21 28 7.0 2.22
1 All lengths are along the hole axis, and the true thickness has yet to be established. 2 All assay results are below the cutting grade of 30 g/t Au

Figure 2 – Chigata Zone

Korhogo Project Map 1

Assay results from one section below trench KOTR17-0006 (Figure 3) also returned significant gold values. Hole KORC17-0039 (Figure 3) returned an average grade of 1.04 g/t Au over 32 meters, including 1.84 g/t Au over 5 meters and 2.39 g/t Au over 3 meters. The mineralized zone consists of a shear zone affecting volcanic and sedimentary rocks, located approximately five kilometers north of the Chigata Zone.