VANCOUVER, July 31, 2019
VANCOUVER, July 31, 2019 /CNW/ - Awalé Resources Limited ("Awalé" or the "Company") (TSXV: ARIC) is pleased to announce the end of a successful field season at its 100% Bondoukou Project, Côte d'Ivoire, (Figure 1 and 1b). Further encouraging gold results have been returned for the remaining 5 trenches of the 10 trench (883 metre) program at the Fako prospect, delineating a new mineralised system similar to previously defined 'Locality A' (see Company News Releases dated March 3 and June 4, 2019).
Highlights from the 10 trench program include:
- BETR005 21m at 2 grams/tonne gold ("g/t Au") from 36m with included 1m intervals at 11.5 g/t, 5.5 g/t and 5.4 g/t respectively.
- BETR003: returned 8m at 1.6 g/t Au and 17m at 2.6 g/t Au including 1m intervals at 10.5 g/t Au, 11.5 g/t Au and 4.8 g/t Au respectively.
- BETR007 30m at 0.4 g/t Au.
- BETR001 35m at 0.5 g/t Au.
Trench BETR007 has returned 30m at 0.4 grams per tonne g/t gold (Au) defining a broad altered and mineralised system at 'Locality B' – thus defining a second gold mineralised alteration system at the Fako prospect, which lies on the southwestern extents of the Awari Shear Zone.
Geology and alteration at Locality B is identical to the high grade intercepts at Locality A and mineralisation remains open at depth and along strike, see figures 2 through 6 for detailed maps and cross sections of both locality A and B.
Highlighted results from the trenching are follow up from previously reported RC and diamond drillhole intercepts which included (See Company News Releases dated February 2 and August 1, 2018):
- BERC0008: 20 metres at 0.96 g/t Au (including 3m at 1.98 g/t, 4m at 1.62 g/t and 2m at 1.6 g/t Au) from 60m downhole (hole ends in mineralisation)
- BERC0009: 7 metres at 1.2 g/t Au (including 1 metre at 5.6 g/t Au) from 16m downhole
- BERC0019: 18 metres at 1.0 g/t Au from 1m downhole
- BEDD0004: 1.07m at 15.7 g/t Au from 147.3m and 9m at 0.3 g/t Au and 10 metres at 0.4 g/t Au from 153 and 165.8m downhole respectively.
- BEDD0003 - 8m at 6.2 g/t Au (from 0m) Including 1m at 43.3 g/t Au from surface
- BEDD0005 - 4.5m at 1.4 g/t Au from 163m including 0.55m at 7.55 g/t Au downhole
Both these localities present as excellent potential follow up drill targets for further drilling in Q4 2019 - with a revised 'optimal' drill direction from the new understanding of the geometry of mineralisation from the trenching programs. Additionally, the trenching results from these two localities enhances the prospective nature of other gold in auger anomalies along the 10 km long Fako-Bahilé trend within the Awari Shear (Figure 6 & 7), these will now be targeted for further exploration in the 2019-2020 field season.
The Bondoukou Project is developing potential as a new gold camp in west Africa with multiple targets over three main structural orientations – this potential is discussed further in the technical background below.
CEO Glen Parsons commented today:
Awalé has advanced two of its district scale projects being; Bondoukou, in the North East, and Odienné in the North west of Cote d'Ivoire. At Bondoukou we are progressing multiple prospect areas to drill ready status (as can be seen in Figure 7), whilst we continue to further uncover new anomalies with our systematic exploration along defined mineralised structures. At Odienné, we have recently reported 2 exciting drill ready targets at the Vakaba and Empire Prospects.
The 2019/2020 field season will be an exciting period for Awalé as we systematically test these targets with the stated objective of multiple discoveries.
Work at Bondoukou will recommence once rains and water levels have abated, but at Odienné we expect to be back on the ground early in September with easier access.
I look forward to updating the market with the anticipated progress."
View attached figures: http://www.awaleresources.com/_resources/maps/Fako-Trenches-July.pdf
Table 1: Significant Intercepts - All Trenches.
*Calculated at 0.1 g/t trigger including 2m internal waste
**Calculated at 0.5 g/t trigger including 2m internal waste
Other included intercepts are individual samples – all values reduced to 1 decimal place.
Technical Notes on the Fako Prospects:
Two localities within the Fako prospect were selected for trenching where previous RC drilling delivered broad intercepts which included 18m at 1g/t Au in hole BERC0019 (Locality 'A') and 20m at 0.9 g/t in BERC0008 (Locality 'B'). The trenches were planned to intercept similar or new mineralisation as well as understand controls on mineralisation intercepted in the RC drilling (Company News Release February 2, 2018). Some follow-up diamond drilling in these areas did not complete the understanding of the structural framework associated with mineralisation (Company News Release August 1, 2018), the trenching and associated mapping is expected to complete this understanding.
The rocks contained within the Awari Shear are lower Birimian and consist of greenschist facies altered ultramafic, mafic to andesitic volcanic and volcaniclastic rocks. Rocks in the footwall of the shear consist of an amphibolite to granulite facies metamorphic complex which is interpreted to predate the deposition of the volcanic and volcaniclastic rocks contained within the Awari Shear. There is an abrupt change in the metamorphic grade between these two major geologic units.
Initial interpretation from the trenches suggests the north dipping metamorphic complex forms a competent footwall block and the mafic hanging wall rocks to form a brittle ductile environment. The hanging wall rocks appear to form a sequence of SW verging folds which look to have shallow plunging shoots. This relationship seems clear in both trenched areas (approximately 1km apart) and similar alteration systems are evident a further 6 kilometres to the southeast from geological mapping following geochemical anomalism along this contact.
Alteration systems associated with mineralisation are defined by a marked increase in silica alteration (quartz vein intensity), sulphide (>1%) and fuchsite and carbonate alteration (often manifest as iron carbonates), there is a correlation between higher gold grade and more intense deformation and brecciation in the quartz veins. Felsic to intermediate dykes and intrusive rocks are commonly encountered in the hanging wall of mineralisation. These intrusive rocks are interpreted to be late Eburnean and perhaps are drivers of the mineralisation encountered at Fako. Further to this, similar intrusive rocks have been found throughout the project area and are thought to play a major role in late Eburnean gold mineralisation that occurs throughout the Bondoukou project area.
BONDOUKOU PROJECT BACKGROUND
Other than the clear evidence of significant high grade widths of mineralisation at the Fako Prospects, the company has been pushing newfound understanding of the geology and structural framework of the project farther afield, the regional scale potential of the Bondoukou Project is beginning to be better understood. The company, as previously discussed has been applying a systematic approach from target selection to drill testing.
The company has been applying recent advancements in understanding of west African Paleoproterozoic gold mineralised systems. This work has highlighted the importance of late phase plutonism with associated deformation architecture during the Eburnean orogeny and is apparent in the structural and plutonic history of the Bondoukou geology.
Structural development and complexity from multiple deformation events prior to a major gold phase through a major fluid pathway (structure) can be critical and is commonly the control of trap sites for gold bearing fluids in world class Birimian Gold deposits such as Gounkoto-Loulo complex in Mali and Obuasi in Ghana. The exploration approach used by Awalé is to identify, where possible, the primary fluid pathways or principally a primary shear zone and associated structures as a principle target. Proximity to and the identification of late intrusive rocks are also considered important.
With this criteria, preliminary interpretation of the Bondoukou geology highlights three prominent kilometre scale trends at the boundary of Granite-granodiorite bodies to Greenstone mafics and volcano-sedimentary rocks representing >70km strike kilometres of gold fertile structures (Figures 7 and 8). These geologically significant trends are interpreted as potential tectonic boundaries and likely sites for strain and structural complexity.
Awalé has confidence in the camp scale gold potential of the Bondoukou package. The company has been working on prospect pipelines throughout the previous field season and is moving multiple prospects toward drill ready status.
Work completed at Fako, Samanda, Kodio and Yanti this field season has highlighted the camp scale gold potential of the Bondoukou Gold Project. There is evidence for a protracted tectonic history at the project, with multiple fluid pulses and gold bearing events. These fluid pulses have used the same structures (fluid pathways) each time, and these are highlighted in Figure 7.
Perhaps more importantly, the Fako trenching and mapping over the Junction/Kodio trend points toward mineralisation being associated with later phases of the Eburnean Orogeny. This late phase of mineralisation is evident at other large gold camps in west Africa including Loulo/Gountoko, Tongon, and Bonikro, where there is a temporal and spatial association of gold with late intrusive rocks and/or dykes. During the late phases of an orogeny, the high temperatures and pressures that build during the orogenic processes relax and a short, but important phase of extension occurs allowing intrusive bodies and gold bearing fluids to enter the upper crust and form gold deposits. The intrusions act as heat pumps and lubrication for a fluid flow system, perhaps also contributing gold bearing fluids. Significant gold camps/deposits form in these settings.
The Company has issued the 572,000 bonus shares at 25 cent, which have now vested, and wishes to update that further to its news release on May 14, 2018 whereby the Company, granted Andrew Chubb, COO, 400,000 bonus shares of the Company and that under its policies, the Exchange approved only 290,000 shares to Mr. Chubb. The Company currently has sufficient shares outstanding to issue Mr. Chubb the balance of 110,000 shares it originally intended Mr. Chubb to receive. The shares are being issued at the originally deemed price of $0.25 per share.
As per the Management and Discussion Analysis for 31 December 2018, regarding the first Property payment to Sandstorm Gold Ltd, Awalé has now completed the payment of 4,705,882 shares at C$0.085 cents (The share price at that time).
Pursuant to National Instrument 62-103 - The Early Warning System and Related Take Over Bid and Insider Reporting Issues, Sandstorm is announcing the acquisition of an aggregate of 4,705,882 common shares (the "Awalé Acquired Shares") of Awalé, representing approximately 8.6% of the outstanding common shares of Awalé (the "Awalé Shares").
Prior to the acquisition of the Awalé Acquired Shares, Sandstorm held 4,337,200 Shares as well as warrants to purchase an additional 500,000 Awalé Shares ("Awalé Warrants"), representing approximately 9.8% of the outstanding Awalé Shares on a non-diluted basis. Assuming the exercise of all 500,000 Awalé Warrants held by Sandstorm, Sandstorm would have previously held an aggregate of 4,837,200 Awalé Shares, representing approximately 10.8% of the outstanding Awalé Shares (on a partially diluted basis). Upon completion of the acquisition of the Awalé Acquired Shares, an aggregate 9,043,082 Awalé Shares are now owned directly by Sandstorm, representing approximately 18.4% of the outstanding Awalé Shares. Assuming the exercise of the Sandstorm´s 500,000 Awalé Warrants, Sandstorm would then hold 9,543,082 Awalé Shares, representing approximately 19.2% of the outstanding Awalé Shares (on a partially diluted basis).
The acquisition of the Awalé Shares by Sandstorm was effected for investment purposes. Sandstorm may from time to time acquire additional securities of Awalé, dispose of some or all of the existing or additional securities it holds or will hold, or may continue to hold its current position.
The early warning report, as required under National Instrument 62-103, contains additional information with respect to the foregoing matters and will be filed by the Company on Awalé's SEDAR profile at www.sedar.com.
Quality Control and Assurance
All Trenches were continuously channel sampled in Saprolitic rock at the base or on their lower wall, a c.15kg sample was taken for each meter and riffle split. The 2m composite samples were sampled and split in a similar manner but with 15kg sampled for the 2 metre interval.
The Analytical work for geochemical samples and rock chip samples is being carried out at the independent Intertek Laboratories Ghana Ltd. an ISO 17025 (2017) Certified Laboratory. Samples are stored at the Company's field camps and put into sealed bags until collected by Intertek from the Company's secure Bondoukou office and transported by Intertek to their laboratory in Tarkwa, Ghana for preparation and analysis. Samples are logged in the tracking system, weighed, dried and finely crushed to better than 70%, passing a 2-mm screen. A split of up to 1,000-grams is taken and pulverized to better than 85%, passing a 75-micron screen, and a 50-gram split is analysed by fire assay with an AAS finish. Blanks, duplicates and certified reference material (standards) are being used to monitor laboratory performance during the analysis.
ON BEHALF OF THE BOARD
AWALE RESOURCES LIMITED.
Glen Parsons, President and CEO
The technical and scientific information contained in this news release has been reviewed and approved for release by Andrew Chubb, the Company's Qualified Person as defined by National Instrument 43-101. Mr Chubb is the Company's Chief Operating Officer and holds an Economic Geology degree, is a Member of the Australian Institute of Geoscientists (AIG), and is a Member of the Society of Economic Geologists (SEG). Mr Chubb has 18 years of experience in international minerals exploration and mining project evaluation.
This news release contains "forward-looking information" within the meaning of applicable securities laws. Readers are cautioned not to place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by such information. The statements in this news release are made as of the date hereof. The Company undertakes no obligation to update forward-looking information except as required by applicable law.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
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SOURCE Awale Resources
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you are invited to visit the Awalé Resources Limited website at www.awaleresources.com, or contact Karen Davies, Head of Investor Relations at Tel: 604.314.6270Copyright CNW Group 2019