Another explorer handsomely rewarded in Burkina Faso
Australia's Orbis Gold (ASX:OBS) on Tuesday released results from the infill drill program at its Natougou project in Burkina Faso that upped indicated resources a whopping 500%.
While total resources increased 11% to 2.0 Moz, the indicated category jumped from 0.2 Moz to 1.2 Moz with only a slight reduction in grades to 5.1 g/t.
The Natougou gold deposit was discovered by Brisbane-based Orbis Gold in April 2012. Orbis will restart exploration drilling in the fourth quarter as little drilling has been done beyond the immediate resource area.
Orbis was unchanged on the Sydney Stock Exchange ahead of the news on Tuesday, but the A$83 million company is up more than 50% this year.
Independent investment advisers Haywood Securities upgraded the stock with a price target of $0.65 from the current $0.38 and calls Natougou one of the most attractive development projects in the region.
In a research note Haywood says as a result of this drilling, opportunities exist to improve the grade and stripping profile at the outset of the mine, which could benefit project economics.
Canada's TrueGold Mining (CVE:TGM) and Roxgold (CVE:ROG) have also enjoyed spectacular results in the West African nation, delineating deposits with some of the highest grades in the world.
Burkina Faso with a population of 16 million people, is the continent's fourth largest gold producer after Mali and has commissioned eight new mines over the past six year.
Image of butterfly mask signalling the rainy season and planting season created by Nuna people of Burkina Faso viacatface3.