Rocky reception for Compass Gold's initial drill results
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(Kitco News) - Compass Gold's (CVE:CVB) first drill results of its Boumban Central and Farabakoura prospect areas appeared to upset investors.
Mali-focused Compass Gold dropped 36% to 35 cents a share after announcing its findings.
The company said drilling at Boumban Central intersected gold mineralization in a similar geological environment to that encountered 5-km south at the Farabakoura artisanal workings. The best interval at Boumban Central was 3 m at 1.33 g/t Au, within 10 m @ 0.57 g/t Au (from 31m).
The company's CEO, Larry Phillips, said the exploration work showed "wide-spread, lower grade mineralization."
"Last year, our exploration work indicated the presence of a structural trend, extending more than 11 km to the north of our Farabakoura mineralized zone," said Phillips. "These first drill holes on just a small portion of the 4.3 km Boumban Central target were located roughly 5 km north of the Farabakoura zone. The interpreted results suggest that the correct geology and structure for potentially hosting significant gold mineralization continues at least 5 km north along this major trend. The assay results on Boumban Central also show wide-spread, lower grade mineralization."
The company raised $5.5 million in November for a 10,000-meters drill program on the Farabakoura Trend, comprising the Farabakoura and Kabangoué artisanal workings and the high-priority Boumban prospect, on its Sikasso Property in Southern Mali.