Labola, why no drill results published?It’s one of our properties in Burkina Faso, 425 kilometres southwest of Bissa. Naturally, if it becomes a mine one day (far into the future) it will become our 3rd Burkina Faso mine as it’s too far to be attached to Bissa or Taparko.
It is early stage, but is accompanied with encouraging early stage results. It was drilled in 2005 with encouraging results. It was then put on the back burner because HRG had too many other priorities to focus on, namely, Bissa, Prognoz, development of both Berezitovy and Taparko. With both Berezitovy and Taparko reaching the commercial production stage, I recall seeing an aggressive plan to continue drilling at Labola 2008 by previous management.
I found this short note in both HRG’s ’08 Y/E news release and HRG’s ’08 Y/E MD&A:
“diamond drilling occurred at Labola”
My first thought is where are the 2008 detailed drill results for Labola? Why haven’t they been published? Where is/was the news release (similar to first phase drilling in 2005)? As an investor in HRG, I want to know the results, even it they happen to be terrible. I want to see the results so I can make an informed decision if Labola has potential to advance further or if I should write it off as not being economically viable. How can I make that decision when I have not been presented with the drill results?
This was a comment from the 2005 NR (of drill results).
"Visible gold was observed in nine of the 18 holes."
Naturally, with those types of observations by the geologists, it leaves me wanting to find out more, as a shareholder.
As an investor, I want to know if the second phase drill program was successful in furthering that potential. As mentioned, if it failed, I still want to know. This is yet another example where I feel that transparency is missing for minority shareholders. I understand that it might have been difficult to release data during the financial crisis of last year, but it’s now end of June 2009. Given the takeover bid, IMO results should have been available to the public by now, good, bad or ugly.
Here is only part of the NR from the initial drilling program from 2005, which includes some drill highlights:
JUN 8, 2005 - 13:05 ET
High River Gold Receives Encouraging Drilling Results at its Labola Property in Burkina Faso
TORONTO, ONTARIO--(CCNMatthews - June 8, 2005) - High River Gold Mines Ltd. ("High River" or the "Company")(TSX:HRG) today announced encouraging results from its first reconnaissance drilling programme at its 100%-owned Labola property in Burkina Faso, West Africa. High River completed 1,604 metres of reverse circulation drilling in 18 holes and 1,628 metres of RAB drilling on one fence line to test the Labola shear structure at approximately 500 metre intervals along a strike length of 11 kilometres.
Initial reconnaissance work on the property by High River had identified three subparallel mineralized quartz vein structures (Central Zone). Another subparallel zone was found approximately 2.5 kilometres east of the Central Zone. The surface expression of these structures is marked by extensive workings generated from near-surface, high-grade gold mining by some 5,000 orpailleurs. Results from the drilling indicate the presence of a series of subparallel quartz veining zones ranging from a few metres to 80 metres in width and carrying anomalous to very high-grade gold mineralization. Visible gold was observed in nine of the 18 holes.
High-grade gold intersections from the programme include:
- 65.2 g/t (1.9 oz/t) over 1 metre in hole LBR-004
- 20.7 g/t (0.60 oz/t) over 2 metres and 12.8 g/t (0.37 oz/t) over 1 metre in hole LBR-010
- 46.2 g/t (1.35 oz/t) over 1 metre in hole LBR-012
- 7.1 g/t (0.21 oz/t) over 5 metres in hole LBR-013
- 52.0 g/t (1.52 oz/t) over 1 metre and 8.4 g/t (0.25 oz/t) over 1 metre in hole LBR-014
- 32.0 g/t (0.93 oz/t) over 2 metres and 8.4 g/t (0.25 oz/t) over 1 metre in hole LBR-016
The gold-bearing, low sulfide, quartz vein systems are hosted in graphitic, chloritic and sericitic schists. Within the Central Zone, hole LBR-010 encountered two high-grade quartz veins approximately 15 metres apart, within a wider zone of quartz veining starting at 20 metres and ending at 100 metres (end of hole). This hole also intersected lower grade gold mineralization: 6 metres grading 2.5 g/t (visible gold), 10 metres grading 1.0 g/t, and 11 metres grading 1.9 g/t (visible gold). Also on the Central Zone, Hole LBR-014 intersected two high-grade quartz veins approximately 35 metres apart, and hole LBR-013, located between holes LBR-012 and LBR-014, intersected a 40 to 50 metre wide zone of quartz veining returning 5 metres at 7.1 g/t gold with each 1 metre sample assaying: 1.5 g/t, 11.4 g/t, 11.2 g/t, 6.7 g/t and 4.6 g/t. These intercepts demonstrate the potential for broad low-grade mineralization with high-grade shoots.
On the easternmost structure, which has been traced for a strike length of only 1 kilometre at this time, hole LBR-016 intersected two high-grade quartz veins lying 15 metres apart and containing visible gold.
The RAB drilling, which consisted of 48 holes inclined at 45 degrees, spaced 15 metres apart and averaging 34 metres, along a 705 metre line, encountered the trace of one of the two central quartz vein structures. RAB hole LBB-043 intersected 6 metres grading 0.42 g/t gold in altered sericite schist containing 1% to 10% quartz. The drill fence was designed to cross a 1.6 kilometre long gap between artisanal gold workings along the Central Zone. This area corresponds to a topographic low, which could indicate that the shallow RAB drilling completed may not have reached the quartz vein system.
IP Survey
High River also completed an IP test survey over an area of 1 square kilometre covering the Central Zone of gold mineralization. The results showed a strong chargeability and resistivity response over the mineralized zones and indicated the presence of additional similar structures in the survey area. The Company plans to extend the IP survey and initiate a magnetic survey to better define the known structures and possibly trace the presence of other mineralized structures.
Work Programme
The Company is highly encouraged by the positive results obtained from this first widely-spaced drilling program at Labola. The initial results, as observed in holes LBR-010 and LBR-013, indicate the potential for finding wide, low-grade disseminated mineralization with high-grade shoots, which could be mined by open pit. Before proceeding with the second phase of reverse circulation and core drilling, High River will continue with detailed geological mapping, soil geochemical sampling and geophysical surveys to obtain a better understanding of the structural controls of the gold mineralization.