Sylla Gold Corp. [SYG-TSXV] shares rallied in active trading Tuesday after the company released assay results from its Niaouleni Gold Project in Southern Mali, West Africa.
Results released after the close of trading on August 29, 2022, include positive gold assays from 18 reverse circulation drill holes covering 2,588 metres. This batch of drill holes was completed primarily in an area known as the Niaouleni South prospect, which is located approximately 6.0 kilometres south of Toubani Resources Inc.’s [TRE-TSXV, 3A61-FRA] (formerly African Gold Group) Kobada Project.
Kobada is in the advanced stage of development and is capable of producing 100,000 ounces of gold annually, according to a feasibility study completed last year.
Drilling highlights from Niaouleni include 5.17 g/t gold over 25 metres, including 79.8 g/t gold over 1.0 metre in drill hole NSRC22-018.
Sylla Gold shares advanced on the news, rising 12.5% or $0.015 to 13.5 cents on volume of 861,920. The shares are currently trading in a 52-week range of 30 cents and 11 cents.
“We are very encouraged by this first pass of assay results from the initial reverse circulation drilling program, which have confirmed the presence of both significant gold grades and mineralized widths at our Niaouleni South prospect in 15 of the first 18 holes drilled,” said Sylla President and CEO Regan Isenor.
“We are further excited by the results from drill hole NSRC22-018, which may suggest the presence of high grade east-west quartz vein/veinlet clusters inside the NNE to N-S trending structural corridor,” he said.
At Niaouleni, significant gold intersections were reported in drilling programs conducted by previous operators. They included Mink International Resources/Viceroy Resources between 1993 and 1997, and Frontline Gold Corp. between 2010 and 2011. Isenor said no exploration work has been carried out at Niaouleni during the past 10 years.
Meanwhile, assay results are still pending for an additional 39 reverse circulation drill holes covering 4,717 metres and for 212 regional air core holes covering 10,600 metres. The company said drilling was temporarily shut down on July 14 due to the start of the rainy season in southern Mali. However, it said the drill remains on site and drilling activities are expected to recommence after the rainy season.
Drilling on the Niaouleni Project had a number of goals, including:
- Confirm previously defined wide zones of high-grade gold mineralization in historical drilling programs completed by previous operators.
- Define the structural characteristics of the interpreted Kobada Shear extension on the property.
- Test extensive termite mount and soil anomalies that lie both on strike from the adjacent Kobada deposit and other areas of the property.
All gold-bearing intersections are hosted in metasedimentary saprolite with quartz veins/veinlets. The company said an east-west trending (barren) mafic dyke cuts across the mineralized corridor.