African Gold Limited hits fresh gold at its Didievi project in the Ivory Coast

Tue 23 Aug 22, 11:10am (AEDT)
Gold nuggets resting on dirt in shallow water
Source: iStock

Key Points

  • African Gold has hit thick intersections of high grade gold and numerous pockets of mid-low grade gold at Didievi
  • Company says results confirm gold system underground on-site at least 1.5km x 1km in size
  • Fresh results today come from the Blaffo-Gueto prospect, part of the Didievi project; follow up diamond, RC drilling on the way

African Gold (ASX:A1G) will launch diamond and RC drill rigs at its Didievi project in the Ivory Coast, West Africa, in the coming weeks and months on the back of strong gold intersections reported today at the Blaffo-Gueto prospect. 

The gold project is situated in the southern central region of Ivory Coast (Côte d'Ivoire) and nearby the city of Yamoussoukro, the fifth largest in the country, and well-established with hotels and hospitals. 

Fresh gold hits at Didievi were retrieved from shallow depths, as well as thick intersections pulled from significant depths underground. 

Today’s results come from a diamond drill run local geology hosting the Fetekro Birimian Greenstone Belt. 

What has African Gold Limited found? 

Investor information provider Undervalued Equity notes high-grade gold is that which exceeds 5 grams of gold per tonne (5g/t); many Australian operations boasting grades of 4g/t are also considered high-grade. 

The company is reporting the following hits: 

  • 79.0m @ 2.18g/t gold from 152m, including:

    • 38.0m @ 4.13g/t gold from 165m depth

  • 08.0m @ 1.18g/t gold from 19m depth

  • 13.0m @ 1.51g/t gold from 222m depth, including: 

    • 03.0m @ 5.29g/t gold from 222m depth

The company is also describing its discovery of a “broad mineralised halo extending from surface of 231.0m @ 1.02g/t gold.” 

Today’s results are not as exciting as those previously reported by the company, which have included: 

  • 10.0m @ 123g/t gold from 66m depth

  • 17.4m @ 17.0g/t gold from 244m depth 

  • 83.3m @ 3.3g/t gold from 166m depth 

  • 80.0m @ 3.0g/t gold from surface

  • 37.0m @ 7.7g/t gold from 42m depth 

A lot of gold, but much of it underground 

African Gold has proven beyond doubt that it is sitting on an acreage with considerable gold mineralisation present, but what remains to be seen is how the company intends to develop either an open pit, or, underground mine. 

Apart from one 80m intersection at 3g/t that starts from the surface, most of the targets reported today (and those hit previously) commence at at least 40m depth. 

Follow-up drilling once wet season ends

“Follow up diamond and RC drill programs have been designed to further test high-grade areas following the end of the wet season in Q4, 2022,” African Gold CEO Glen Edwards said. 

“Geological and mineralisation models are being developed and while overall controls are understood, we do not yet fully understand the controls to super high grade parts of the system.”

“We do, however, know the high grade shoot plunges to the south-west at around 30 degrees and is open at depth.” 

How is African Gold doing? 

The company’s performance through 2022 has been hit by risk-off sentiment with shares falling from 24c in mid-late February to 9.5c in mid-late August. 

A surface look at performance shows the following: 

  • Year to date (YTD) performance down -48.65% 

  • One year returns down -39.62% 

The company has a market cap of $11.3m and is ranked 611 of 912 materials constituents on the ASX. 

What shareholders probably want to watch out for: the company only had A$761,000 at the end of the June quarter. 

It spent $308,000 during the quarter. 

The Ivory Coast uses the West African CFA Franc (XOF). 9,500 CFA Francs is AUD$20.

The shape of African Gold's six month charts
The shape of African Gold's six month charts


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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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