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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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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