Contango Holdings provides Garalo-Ntiela Gold Project update

Highlights

• Airborne magnetics have confirmed that Garalo-Ntiela Project hosts similar tectonic structures, which support a number of multi-million ounce deposits in the region.
• Two prominent structures have been confirmed, running NE-SW and NW-SE, along with a new 'dome' structure in the north-west corner.
• Drilling to commence on G1 and G3 structures 4Q21, targeting NI 43-101 resource of up to 2 million oz.
• Near term production scenario continues to be optimised.

Aeromagnetics and airborne geophysics for the collection of magnetic and radiometric data has been completed and analysed, with the objective of informing direct mine planning activities and supporting the project's accelerated development into production. These studies have built on the existing drill data on the project, the basis for the March 2021 NI 43-101 Independent Technical Report, which highlighted the potential for the Garalo licence to host a 2 million oz resource.

The survey also targeted some untested areas within the project area, particularly at Ntiela where exploration work earlier in 2021 yielded very encouraging results. The company believes the results of the survey reconfirm the expected extensions of the G1 and G3 deposits, the main targets used to support the potential 2 million oz resource.

The company will now focus on a short but targeted drilling campaign on the G1 and G3 deposits to test interpretations to depth alongside infill drilling, to support a formal enhanced NI 43-101 Resource Report.

The expectation remains that Garalo-Ntiela will merit the development of a processing hub capable of supporting multiple opencast operations given the excellent proximal infrastructure, historical exploration and the orebody's near surface location. However, the company is continuing to focus and refine its plans for a smaller standalone 30 000 oz/y heap leach gold operation, which is expected to generate significant cashflow for a modest CAPEX requirement.

Carl Esprey, CEO of Contango Holdings, said: “The aeromagnetic and airborne geophysics work conducted during 2021 has reinforced our belief in the potential of the Garalo-Ntiela Gold Project to be developed into a profitable gold mine. Indeed, the results from the G1 target clearly demonstrate geological similarities to nearby producing mines.

“This recent programme was devised to provide valuable geotechnical data to direct our broader mine planning activities, whilst also providing further information to support a proposed initial 30 000 oz/y heap leach gold operation. The positive results have led us to embark on additional exploration with the objective of defining a 2 million oz resource as indicated in the NI 43-101 Independent Technical Report delivered earlier this year. We look forward to providing further updates in due course as our activities in Mali increase over the coming weeks and months.”

Read the article online at: https://www.globalminingreview.com/exploration-development/01112021/contango-holdings-provides-garalo-ntiela-gold-project-update/