Shares in Roxgold Inc (CVE:ROG) gained nearly 6% in massive volumes on Tuesday, after announcing another set of spectacular drill results from its ultra-high grade Yaramoko project in Burkina Faso.
In midday dealings the Toronto-based junior was trading near its highs for the day changing hands at $0.72, up 5.9% on the Toronto Venture Exchange.
Around 1 million shares in the $169 million company had changed hands compared to the usual daily average of half that.
Roxgold announced intercepts of 226.76 grams per tonne gold over 3.1 metres (2.7 metres true width) including 442.00 gpt gold over 1.6 metres (1.4 metres true width) from the Bagassi South target of its regional exploration drilling program at Yaramoko.
This and other meaningful intercepts at Bagassi South, one of many highly prospective targets, has the potential to expand the scope of the project substantially. Roxgold's regional drilling covers 55 square kilometres while another 5,000m of diamond drilling is planned for Bagassi.
Roxgold's share price is up 62% since the start of the year
Roxgold's share price is up 62% since the start of the year after announcing a robust feasiblity study for Yaramoko in April on the back of a string of good drilling results and a number of financing deals to push the project forward.
Yaramoko stands out as a project thanks to a combination of one of the high-grade undeveloped deposits in the world containing probable reserves of 759,000 oz of gold at an average grade of a whopping 11.83 g/t gold and some of the lowest costs in the industry – all in sustaining costs of $590 an ounce.
The Yaramoko feasibility improves on the PEA and calls for a low capex – only $106 million placing it in the bottom 5% of African gold projects – underground mine producing 99,500 ounces on average annually for an initial 7.4 years. Underground development and engineering starts end-2014.
Roxgold owns 100% of Yaramoko, but the government of Burkina Faso is entitled to 10% of the project after the formal award of permits.
Burkina Faso with a population of 16 million people, is the continent's fourth largest gold producer after Mali and has commissioned eight new mines over the past six year.
Image of butterfly mask signalling the rainy season and planting season created by Nuna people of Burkina Faso via catface3.