Contango Holdings PLC Garalo-Ntiela Gold Project Update (7451F)
July 20 2021 - 2:00AM
UK Regulatory
TIDMCGO
RNS Number : 7451F
Contango Holdings PLC
20 July 2021
Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural
Resources
Contango Holdings Plc ('Contango' or the 'Company')
20 July 2021
Garalo-Ntiela Gold Project Update
Highlights:
-- Completion of aeromagnetic and airborne geophysical surveys
-- Mining camp construction nearing completion
-- Resultant ground-based IP to commence early August
Contango Holdings Plc, the London listed natural resource
development company, is pleased to provide an update on its
scheduled work programme at the Garalo-Ntiela Gold Project Area
('the Project') in Southern Mali.
Aeromagnetics and airborne geophysics for the collection of
magnetic and radiometric data commenced at the start of July 2021
and has been completed across both licences as planned. Results
from the survey are expected in early August 2021. It is important
to remember that the Project has been drilled extensively
previously and as such the collection of this data was to further
aid direct mine planning activities and support the Project's
accelerated development into production.
The survey did however also target some as yet untested areas
within the Project area, particularly at Ntiela where exploration
work earlier this year yielded very encouraging results. The
Company believes the results of these studies will outline
extensions of the G1 and G3 deposits, previously identified as
showing the potential to host in excess of 1.8Moz of gold.
Ground-based induced polarisation (IP) is expected to commence upon
receipt and interpretation of this new data in early August
2021.
The Company is also pleased to report the Project camp is
nearing completion, supporting the permanent presence of up to 20
employees and contractors, along with a secure storage building for
drill core.
Expectation remains that Garalo-Ntiela will merit the
development of a processing hub capable of supporting multiple open
pit operations given the excellent proximal infrastructure,
historical exploration and the orebody's near surface location
Carl Esprey, Chief Executive Officer of Contango Holdings, said:
"We have received consistently encouraging results from development
and exploration activities at Garalo-Ntiela, including recent data
from local trenching work and grab sampling. The analysis of this
highlights the increasing potential that the Project will deliver
many multiples of the original resource quantum that we originally
considered when acquiring Garalo in October of last year. Indeed,
our work programme over the next few months is designed to
specifically direct our development and mine construction work to
ensure we choose the optimum path to realise the full potential of
this significant gold asset.
"I look forward to sharing results from this work programme over
the coming weeks and into Q4 as we look to realise the value of the
Garalo-Ntiela Project and have this reflected in the market.
Similarly, we continue to make progress in Zimbabwe and I look
forward to providing updates on our commercial negotiations with
regard to the Lubu Coal Project in due course."
Project Background
The combined Garalo-Ntiela Project covers an area of 161.5km(2)
and is in the department of Bougouni within the Sikasso region in
southern Mali, 200km south-south-east of Bamako and close to the
Guinea border. The Project is surrounded by several
multi-million-ounce gold deposits and the region is home to some of
the world's leading gold miners, which has helped to establish Mali
as the third largest gold producer in Africa.
An NI 43-101 Independent Technical Report delivered in March
2021 highlighted the potential for the Garalo to have up to 2Moz
Resource. The Company believes that there is still room for
improvement over and above this threshold as, in addition to G1 and
G3 targets (the basis for 2Moz), numerous other clusters of
anomalous zones with potential for gold discovery have been
identified in both the Garalo and contiguous Ntiela permit area.
With this background and given the excellent infrastructure in the
vicinity, historical exploration, and the deposit's surface
location, the Company aims to establish a processing hub in the
region, capable of supporting multiple open pit operations
targeting initial production of gold in the near term in
conjunction with an exploration programme including expansion
drilling.
The aeromagnetics and airborne geophysics campaign has now been
completed and it is expected to take 2-3 weeks for the data to be
analysed, with ground-based IP studies set to commence upon receipt
of the results. The over-arching strategy of this work is to better
define the extents and characteristics of the orebody, considering
the significant increase in resource quantum that is now
contemplated at Garalo. The Company is advancing the development of
a 30,000oz per annum heap leach operation from the shallow oxides
given the high margins and low capex for its development. Given the
dramatic increased resource potential highlighted in the NI 43-101
Independent Technical Report released in March 2021, the Company is
also likely to undertake a drilling programme in parallel to help
realise and optimise the asset's full potential, as Contango looks
to establish a large standalone gold mine with multiple open pit
operations across both permit areas.
**ENDS**
For further information, please visit
www.contango-holdings-plc.co.uk or contact:
Contango Holdings plc E: info@contango-holdings-plc.co.uk
Chief Executive Officer
Carl Esprey
Brandon Hill Capital Limited T: +44 (0)20 3463 5000
Financial Adviser & Broker
Jonathan Evans
St Brides Partners Ltd E: info@stbridespartners.co.uk
Financial PR & Investor Relations
Susie Geliher
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