Abzu Gold Ltd. (TSX: V.ABS, Stock Forum) said the initial results from its ongoing drill program at its flagship Nangodi gold project in Northern Ghana are very encouraging.
The Nangodi concessions are located in northern Ghana in the Bole-Nangodi Gold Belt.
According to the Anzu Gold press release, highlights from initial results include 39.2 metres grading 1.16 grams per tonne gold, 20.0 metres grading 1.43 grams per tonne gold and 3.0 metres grading 2.81 grams per tonne gold.
Widespread alterations including quartz, albite, chlorite, carbonate, hematite, and minor sulphides have also been encountered throughout all holes.
All drilling results to date will provide the basis for a second quarter, 2013 resource estimate as well as develop a stronger model for pre-feasibility work.
As of the end of January 2013 Abzu has spent on Nangodi over $2.2 million.
The company's option agreement with Kinross Gold Corp. (TSX: T.K, Stock Forum) allows for the creation of a joint venture after $3 million is spent within three years any of the ten option agreement properties.
As per the option agreement, the joint venture shall grant to Abzu 51% ownership and operational control, while Kinross would have 49%.
Abzu is significantly ahead of the $3 million/three year schedule, and by the conclusion of the planned 2013 drill program or shortly thereafter the company expects a joint venture with Kinross to be formed.
Abzu is a gold exploration and development company working in Ghana, Africa's second largest gold producer and host to some of the world's largest gold deposits.
On Monday, Abzu was up 7.69% and was trading at $0.07 a share. The company had a market cap of $6.2 million, based on 88.9 million shares outstanding. The 52-week high and low was $0.26 and $0.05 respectively.