| Good grade at Goulagou II Riverstone Resources (RVS-V) announced on September 15 some drill results from its Goulagou II gold deposit, which is part of its Karma project in Burkina Faso (Table 1). Six near-surface diamond drill holes were released with a weight average grade (by width) of 2.0 g/t gold over 11 m. The highlight was hole GLG-DD-10-003 which intersected 5.32 g/t gold over 19m. Four other holes were drilled for geotechnical purposes. Goulagou II has an NI-43-101 resource of 440,000 oz gold with an average grade of 1.7 g/t gold. It is subject to an option to purchase agreement with Golden Star Resources (GSC-T, NOT RATED). RVS is in our Mineral Exploration Watch List. Drilling indicates continuity of mineralization outside the resource area The holes with significant assays were drilled between previously drilled fences which were all outside the gold resource outline. We are impressed that these holes (five of them) all intersected notable mineralization while the continuity of mineralization along strike indicates the potential to increase the size of the resource. The intercept which encountered high-grade mineralization over a significant width, mentioned above, may lead to other high-grade finds. Karma project taking shape Riverstone continues to drill at the Karma project which consists of the contiguous Rambo, Kao, Goulagou, Youba and Rounga permits (Figure 2). Since March, RVS has drilled nearly 25,000m of drilling and is currently undertaking a +20,000m H2 2010 drill program. An updated resource is expected in the second half of 2010 with the goal of doubling the total Karma resource from one million ounces to two million. The Company also plans in H2 to collect pre-feasibility level information and initiate the study. We look forward to more news on these fronts in the coming weeks. |