Boungou Project

An exploration budget of $9 million has been established to explore the Tapoa Permit Group in 2018. The program is expected to comprise 42,000 meters of RC, 60,000 meters of auger drilling and 4,000 meters of trenching activities.

Boungou Proximal

A total of 22 RC holes (2,948 meters) was completed at Tawori, testing a shallow west-dipping structure dubbed the Osaanpalo Zone (see Figure 1) that outcrops four kilometers north of the Boungou Mine. The nature of mineralization of the Osaanpalo Zone including biotite alteration and shearing along with silicification, sericitization and pyrrhotite-arsenopyrite mineralization, shows similarities to the Boungou Shear Zone. To date, significant gold values have been obtained within the structure, showing a north-trending orientation of mineralization.

Figure 1 - RC Drill Results Outlining Osaanpalo Zone on Boungou Proximal

The Osaanpalo Zone provides an indication of the potential at Tapoa, particularly proximal to the Boungou Mine and infrastructure. The discovery shows that multiple near-surface gold-bearing structures like those at Boungou occur on the property that could rapidly add to the already extensive gold reserves at Tapoa. Further follow-up drilling is currently ongoing at Osaanpalo to establish the extent of the structure.

Boungou Regional

The Dangou permit is located approximately 30 kilometers east-northeast of the Boungou Mine. Previous work at Dangou has shown that the area is underlain by intermediate to mafic intrusive rocks and mafic volcanic flows. Soil and auger sampling in the area uncovered a series of west-northwest trending gold anomalies coincident with induced polarization chargeability highs. By the end of the second quarter of 2018, a total of 88 RC holes and two core holes (10,561 meters) had been completed across the most promising anomalies (see Figure 2).

Assay results from this drilling show that the area is highly anomalous in gold throughout. In addition, significant gold mineralization was obtained from altered and locally sheared intervals of the intrusive rocks.

Among these results, the Baali Zone discovery appears promising with wide biotite alteration and gold mineralization. Although the geometry of the zone remains to be established, core follow up drilling suggests a subvertical zone of altered gabbro and basalt. The Dangou area has also returned significant values from mineralized quartz veins in a sheared gabbro in addition to disseminated and stringer sulfides in gabbro These, and other significant cuts from the drilling, will be followed up on in the coming months.

Figure 2 - Q2 2018 Drill Results Outlining Baali Zone on Boungou Regional