REG - Cora Gold Limited - Multi-element analysis at Madina Foulbé

Cora GoldAnnouncement

07/10/2024 07:00

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RNS Number : 0578H  Cora Gold Limited  07 October 2024

Cora Gold Limited / EPIC: CORA.L / Market: AIM / Sector: Mining

7 October 2024

Cora Gold Limited

('Cora' or 'the Company')

 

Multi-element analysis highlights multiple gold deposit associations at Madina
Foulbé in East Senegal

 

Cora Gold Limited, the West African focused gold company, is pleased to
announce the results of ICP-MS (4 acids) analysis from its recently completed
reconnaissance Reverse Circulation ('RC') drilling programme at the Tambor
gold anomaly (3km long by 1.6km wide gold soil anomaly @ >20ppb), which is
one of four key target areas within the Company's Madina Foulbé exploration
permit in the Kenieba Project Area ('the Project') of east Senegal.

 

Due to the shallow nature of the reconnaissance drill programme into the
underlying bedrock, the ICP-MS data in conjunction with the corresponding gold
assays, which included a best drill result of 10m @ 4.41 g/t gold ('Au') from
41m depth, has provided the Company with a larger dataset from which to
understand and interpret the large Tambor gold soil anomaly. These results
together with the Project's proximal location to several Tier 1 gold deposits
located within the Kédougou-Kéniéba Inlier ('KKI') (see figure 1) underpin
the importance and possible large scale of in-situ bed rock gold
mineralisation at the Tambor anomaly.

 

MULTI-ELEMENT STUDY HIGHLIGHTS

●     2,018 samples analysed by ALS laboratories (Johannesburg), using
ICP-MS (4 acids) for multi-element data (46 elements per sample)

●     Data was interpreted in IMDEX's ioGAS software by industry
renowned consultant Dr. Nick Oliver (HCOV Global)

●     Results indicate that gold mineralisation is associated with an
Intrusion Related Gold System ('IRGS'); these systems can be massive in size,
for example Morila (Mali); Donlin Creek-Fort Knox-Pogo (Yukon / Alaska); and
Kidston (Australia)

●     Each of the 10 drill targets has a distinct geochemical signature
through their multi-element associations, alteration type and lithologies
present, enabling the Company to rank and prioritise the targets for future
exploration expenditure

●     In identifying the possible deposit models for gold
mineralisation, future exploration can take into the account their typical
deposits properties; IRGS deposits tend to have subtle magnetic signatures,
lower chargeable anomalies and a more distinct spatial relationship with
intrusions

●     With more than 50% of holes drilled ending in mineralisation
(>0.1 g/t Au and <5m from end of hole), using the trends of the elements
associated with gold, and depending on the host lithologies, results show that
mineralisation is likely to continue past the end of the hole in most
instances with deeper drilling now required to expand these known zones

 

Bert Monro, Chief Executive Officer of Cora, commented, "Given the size and
geometry of the Tambor gold anomaly, coupled with the promising first round
drilling results, this analysis work has further enhanced our understanding of
the significant gold mineralisation spread out over a large area within the
bedrock at Tambor. The results from the ICP-MS analysis have further
strengthened the Company's view that the current exploration completed to date
has literally only just scratched the surface at Tambor. It's an exciting time
for the Company to be exploring in such a proven gold belt of the KKI and we
look forward to conducting further exploration to unlock the excellent
exploration potential at Tambor and deliver value to our shareholders."

 

 

Figure 1. Location map of KKI, Tier 1 deposits and Cora Gold's Madina Foulbé
exploration permit

 

 

ICP-MS PROGRAMME DETAILS

 

Background

To assist the Company in its understanding of the Tambor gold anomaly and its
future exploration efforts, all drill samples (2,018) from the recently
completed 39 hole reconnaissance RC drill programme were submitted for ICP-MS
(4 acid digest) analysis at ALS Johannesburg. This data coupled with the gold
analyses has provided the Company with a large scientific dataset to
supplement previous gold only soil sampling results.

 

The use of multi-element data is commonplace within the exploration industry,
particularly in weathered and intrusive terrains such as Tambor. Some elements
associated with and dispersed around gold mineralisation may remain relatively
immobile and provide greater insight into the characteristics of the
mineralisation.  ICP-MS (4 acids) is considered to the be the industry gold
standard for multi-element geochemical analysis, as it provides a full suite
of elements necessary to test key relationships between lithology and
mineralisation, alteration styles and intensities, and the possible deposit
type that hosts the gold mineralisation.

 

A common exploration assumption is that gold in soil anomalies generally
doesn't accurately reflect gold distribution in the bedrock; this is due to
the oxidation of pyrite (sulphides), which creates acid, causing the mobile
elements such as gold, silver ('Ag'), copper, lead, and zinc to be transported
during weathering. More insoluble elements in acid environment form bonds with
goethite (FeOH's) and are relatively immobile during weathering. The immobile
and path finder elements for gold in soils are molybdenum ('Mo'), bismuth,
tellurium ('Te'), arsenic, antimony and tungsten. Multi-element data also
provides unbiased results especially with regards to lithology determination,
which assists greatly in understanding the full suite of lithologies present,
their spatial relationships and possible origins. This in turn assists in
understanding the possible deposit types and how best to explore for these.

 

IMDEX's ioGAS software is an industry leading software used to compile,
display and interpret ICP-MS multi-element results. Tambor's +2,000 RC drill
samples generated more than 80,000 data points requiring analysis and
interpretation. Interpretation of such large geochemical data sets often
requires expert knowledge. Accordingly, the Company secured the services of
industry renowned ioGAS expert and deposit specialist Dr. Nick Oliver (HCOV
Global). His knowledge and skill set has enabled the Company to deliver these
outcomes from the ICP-MS data.

 

Having completed the ICP-MS study work using fresh and in-situ sample data,
the results and their interpretation are going to greatly assist the Company
in its future exploration at Tambor, especially in carrying out a
multi-element soil geochemical sampling programme from which the geochemistry
data can be interpreted more accurately. This will make any future drill
programme more focused at targeting the best in-situ gold zones.

 

Study Outcomes

 

1.    Lithology Determination

Compared to the visual logging identification, where 6 different lithology
types were identified, analysis of their geochemistry identified 12 different
lithology units. Further analysis showed that the felsic lithologies are
highly peraluminous, that the mafic and felsic rocks have very different
fractionation trends (see figure 2) and were derived from different magmas, an
important aspect in the geological environment at the time of gold formation.

 

Figure 2. Lithology type graph (left) and magma fractionation profile (top
right). Note: SiO(2) was estimated in ioGAS by the difference from 100% by
calculating all other elements as oxides, and making a small allowance for
H(2)O and other volatiles lost during analysis. Open symbols on the left
diagram are interpreted as quartz vein-dominant

 

Confirming the 12 lithology types and plotting their gold concentrations
statistics (see figure 3) identified the lithologies acting as the primary
hosts to gold mineralisation. This information, when coupled with their
spatial location, has provided the Company with a tool in which to target
future exploration at the higher-grade targets.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 3. Box and whisker graph of Tambor's Lithologies and their Au ppm
statistics

 

2.    Metal Associations

The reconnaissance drill programme targeted 10 distinct drill targets under
the Tambor gold in soil anomaly. The ICP-MS study showed that not all targets
are the same, each target has different concentrations and different
associations of metals associated with gold (see figure 4). Understanding the
metals, especially the immobile elements associated with gold, will greatly
assist the Company in understanding the results from future multi-element soil
geochemical sampling programmes at Tambor.

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 4. ICP-MS multi-elements by drill target (1-10)

 

3.    Alteration Types

The Tambor gold in soil anomaly is some 3km long x 1.5km across (@ 20ppb Au).
The recent RC drilling was carried out at 10 targets within or surrounding the
anomaly. ICP-MS data from the 39 shallow RC drill holes drilled into the
bedrock was able to provide insight into the alteration types and their
zonation (see figure 5). Plotting the alteration data in 3-D space highlighted
the possible tops of deeper intrusives and temperature gradients for use as a
vector towards preferred sites for gold deposition. Understanding possible
temperature gradients with the alteration types in conjunction with future
multi-element soil geochemistry and geophysical data (IP and Magnetics) will
assist in defining deeper high priority drill targets at Tambor.

 

Figure 5. Graph of Tambor's alteration types based on Na/Al versus K/Al ratios

 

4.    Deposit model

Based on 39 shallow RC drill holes and the integration of all the available
ICP-MS data and its analysis, it was concluded that the Tambor mineralisation
is likely an IRGS (as denoted by its metal associations and Peraluminous
Felsic intrusive rocks) overprinting an earlier Orogenic gold system.

 

Key aspects that distinguish IRGS' are a strong spatial association with
(typically reduced) felsic to intermediate intrusive rocks and a distinct
metal association with low total sulphides, but relatively high Bi-W-Sn
+/-As-Sb-Mo. Orogenic gold deposits can show some of this metal anomalism, but
usually with a more dominant As-Sb-S and a weaker spatial association with
felsic to intermediate intrusions. Due to the limited spatial coverage and
shallow nature of the recent drill programme, further work and multi-element
data is required over the entire Tambor area before definitive conclusions can
be made about the possible origins of the gold mineralisation and its deposit
type. Understanding and classifying the possible deposit type greatly assists
the Company in understanding the likely deposit characteristics for future
exploration - i.e. IRGS deposits tend to have less sulphides associated with
gold as the gold precipitation mechanism usually involves pressure and
temperature decreases away from causitive intrusions. Orogenic gold deposits
commonly show a substantial change in magnetic properties of the rocks because
magnetite (in mafic rocks or metasediments) is commonly converted to pyrite
during gold precipitation (by sulphidation), leaving a distinctive geophysical
signal.

 

5.    Summary

This small data set of ICP-MS results and their studies have provided valuable
insights into the broader understanding of the potential mineral system and
its characteristics present at Tambor. It is possible that the Tambor Gold
anomaly is related to an IRGS deposit, a common form of gold deposit occurring
around the world, but further work and data is required before this can be
conclusively proved. No possible deposit analogies are being suggested at this
stage for Tambor but known IRGS systems include Morila (Mali); Donlin
Creek-Fort Knox-Pogo (Yukon / Alaska); and Kidston (Australia), which are all
examples of economic multi-million ounce deposits.

 

IRGS deposits tend to have subtle surface or geophysical signatures and may be
more difficult to explore as a result. However, due to the circulation of
magmatic fluids surrounding the intruding intrusives, zonation of metal based
on temperature gradients may act as a vector towards the centre of the
intrusives and / or preferred zones hosting gold mineralisation.

 

Due to the 2-D nature of the drilling (as fences) and irregular locations
under the massive Tambor gold in soil anomaly, it isn't possible at this stage
to use the ICP-MS results as an immediate drill targeting tool. Further
surface multi-element data, IP and magnetic surveys are required to focus and
direct any future drilling programmes.

 

To achieve in-situ bedrock drill results such as 10m @ 4.41 g/t Au from 41m in
hole MFC0013 at Target 1, 16m @ 0.97 g/t Au from 38m in hole MFC0014 at Target
1, 29m @ 0.71 g/t Au from 1m in hole MFC0021 at Target 9, and 19m @ 0.61 g/t
Au from 34m in hole MFC0049 at Target 8, based on drill targeting from gold in
soil values (likely remobilised) is indicative of the large underlying
mineralised system present at Tambor.  The Company requires more data from
geophysical surveys and multi-element soil data, to build a better spatial and
geological model of the likely gold distribution and controls at depth, in
order to generate greater drilling success in this large gold rich system.

 

Competent Person's Statement

The technical information in this release was reviewed and approved by Mr.
Murray Paterson in his capacity as a Competent Person, in accordance with the
guidance note for Mining, Oil & Gas Companies issued by the London Stock
Exchange in respect of AIM Companies, which outlines standards of disclosure
for mineral projects. Mr. Paterson is Cora's Head of Geology and is a member
of good standing with the Australasian Institute of Mining and Metallurgy
(MAusIMM). Mr. Paterson has sufficient experience that is relevant to the
style of mineralisation and type of deposit under consideration, and to the
activity which he is undertaking, to qualify as a Competent Person as defined
in the 2012 Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. Mr. Paterson consents to the
inclusion in this release of the Exploration Results in the form and context
in which it appears.

 

Market Abuse Regulation ('MAR') Disclosure

Certain information contained in this announcement would have been deemed
inside information for the purposes of Article 7 of the Market Abuse
Regulation (EU) No 596/2014 ('MAR'), which is part of UK law by virtue of the
European Union (Withdrawal) Act 2018, until the release of this announcement.

 

**ENDS**

 

For further information, please visit http://www.coragold.com
(http://www.coragold.com) , follow us on social media (LinkedIn and X:
@cora_gold) or contact:

 

 Bert Monro        Cora Gold Limited                  info@coragold.com

 Craig Banfield
 Derrick Lee       Cavendish Capital Markets Limited  +44 (0)20 7220 0500

 Pearl Kellie      (Nomad & Broker)
 Susie Geliher     St Brides Partners                 cora@stbridespartners.co.uk

 Isabelle Morris   (Financial PR)

 Charlotte Page

 

Notes

Cora is a West African gold developer with de-risked project areas within two
known gold belts in Mali and Senegal. Led by a team with a proven track-record
in making multi-million-ounce gold discoveries that have been developed into
operating mines, its primary focus is on developing the Sanankoro Gold Project
in the Yanfolila Gold Belt, south Mali, into an open pit oxide mine. Based on
a gold price of US$1,750/oz and a Maiden Probable Oxide Reserve of 422koz at
1.3 g/t Au, the Project has strong economic fundamentals, including 52% IRR,
US$234 million Free Cash Flow over life of mine and all-in sustaining costs of
US$997/oz. Alongside this, the Company continues to seek value opportunities
across its portfolio and has identified large scale gold mineralisation
potential at the Madina Foulbé exploration permit within the Kenieba Project
Area of east Senegal.

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