Xtra-Gold shares rally on West Africa drilling results

Xtra-Gold Resources Corp. [XTG-TSX, XTGRF-OTC] on Thursday  January 25 announced “highly encouraging” results from the recently completed Bomaa Gold Project scout drilling program at the company’s 100%-owned Kwabeng Concession in Ghana, West Africa.

The company said a total of 17 diamond core boreholes, totaling 985 metres, were completed by Xtra-Gold’s in-house drilling crew.

The first pass drill program targeted the Bomaa North segment of the extensive Bomaa auriferous float/subcrop train. Assay results released on Thursday include outcrop channel sampling work conducted in conjunction with the drill program.

Highlights include 18.5 metres grading 2.04 g/t gold, including 5.22 g/t gold over 5.0 metres, from 4.5 metres down-hole in #BADD17003; 6.5 metres grading 1.2 g/t, including 3.6 g/t gold over 1.0 metres, from 46.05 metres down-hole in #BADD17009; and 5.4 metres grading 1.59 g/t gold, including 2.48 g/t gold over 2.2 metres, from 28.5 metres downhole in #BADD17016.

The Kwabeng concession is located approximately 10 km northwest of Xtra-Gold’s flagship Kibi Gold Project, which holds an indicated mineral resource of 278,000 ounces of gold (grading 2.56 g/t gold) and an additional inferred resource of 147,000 ounces of gold (grading 1.94 g/t gold).

Xtra-Gold has a dominant land position on the highly prospective Kibi Greenstone Belt, which ranks as the last greenstone belt to be drilled and developed in Ghana. The company holds the rights to five concessions, covering 226 km² in the Kibi Gold Belt.

Xtra-Gold President James Longshore was clearly pleased with the results released on Thursday.

“The fact that near-surface scout drilling limited to a 200-metre segment of the Bomaa North silicified argillite/quartz vein zone yielded a highly exploration significant mineralized intercept of 18.5 metres grading 2.04 g/t gold, including 5.22 g/t gold over 5.0 metres, is very encouraging for the continued exploration potential of the almost three kilometre long Bomaa auriferous float/subcrop train,” he said.

The grassroots Bomaa auriferous float/subcrop target was discovered by the company in 2013, proving that additional gold mineralization potential exits on the company’s extensive land position on the Kibi Gold Belt. The Kibi Gold belt exhibits many similar geological features to Ghana’s main gold belt, the Ashanti Belt, and has been the subject of very limited exploration activity targeting lode gold deposits.

Virtually all past gold mining and exploration activity focused on the extensive alluvial gold occurrences in many river valleys throughout the Kibi area.

Investors responded to Thursday’s announcement by sending the shares up 10.87% or $0.025 to 25.5 cents in morning trading Thursday. The 52-week range is $36.5 and 17 cents.