TSXV-listed Volcanic Gold Mines has entered into a binding Memorandum of Understanding to acquire up to 100% of private Côte d’Ivoire registered company JOFEMA Mineral Resources SARL.
JOFEMA’s 100%-owned assets under option consist of near-adjacent exploration permits and exploration permit renewals known as La Debo and Soubré, which together cover an area in excess of 600 km2. The properties also fall on a major mineralising shear zone within one of West Africa’s fastest developing gold provinces.
The properties are located in southwestern Côte d’Ivoire, approximately 140 km southwest of the capital, Yamoussoukro, and are accessible via all-weather roads. A power line crosses La Debo in the vicinity of the historic resource.
Assets at a glance
JOFEMA has completed over 18 000 m of reverse circulation and diamond drilling at La Debo, as well as nearly 40 000 m of RAB, air-core and auger drilling at the property.
In 2016 an inferred mineral resource of 9.5 Mt at a grade of 1.3 g/t for 396 000 oz of gold was defined in two small isolated bodies. This resource has not been verified by Volcanic Gold Mines and is therefore historic in nature.
Meanwhile, over 7 500 surface geochemical samples were also collected at La Debo, and on the basis of these data, in combination with limited RAB drilling results, a number of large, consistent targets are observable along strike from the historic resource, and remain largely untested.
Of particular interest are extensive and continuous soil geochemical anomalies occurring within recognisable and persistent structural zones in proximity to igneous intrusions at La Debo, and Soubré. Importantly, such a combination of circumstances gives rise to gold mineralisation of economic proportion elsewhere within the Birimian rocks of Côte d’Ivoire, a notable example being the nearby Bonikro mine (indicated mineral resource of 1.3 Moz at 1.4 g/t Au and inferred mineral resource of 0.77 Moz at 0.92 g/t Au).
The anomalies at La Debo and La Debo South cover a continuous area of approximately 10 km2, and have been subject of minimal drill testing, which leave important mineralised structures open laterally and at depth.
At La Debo, for example, four consecutive shallow RAB holes at 20 m intervals within the soil anomaly end in >1 g/t Au assays; however, to date no follow-up of this target has occurred, and elsewhere follow-up is minimal.
Further extensive gold in soil anomalism is observed at Soubré, where it is similarly juxtaposed to geological structures. Each of these targets provides Volcanic Gold Mines with the opportunity to potentially grow its resource base using existing data and low-cost conventional exploration drilling techniques.
This acquisition will complement Volcanic Gold Mines’ existing property holdings in the Mandiana district of Guinea, and allow the company to benefit from a valuable consolidation opportunity in a leading African mining jurisdiction.