Golden Rim Resources

ASX-listed explorer Golden Rim Resources is set to double the size of its Kada gold project in Guinea as it lodges an application for a new exploration permit.

Read more: Good news for Golden Rim Resources in Burkina Faso

On 27 July 2020, Golden Rim Resources announced that it had executed a binding heads of agreement to acquire up to a 75% interest in the Kada gold project through the formation of a joint venture – the Kada Joint Venture.

Currently, the Kada Joint Venture comprises of one permit, the Kada Permit, which upon the granting of the new exploration permit, aims to double the Kada gold project area.

The Kada gold project is located in the central Siguiri Basin and it lies 36 km along strike from and to the south of the 10 Moz Siguiri gold mine operated by AngloGold Ashanti.

New exploration permit application

The Ministry of Mines and Geology in Guinea has accepted the application of a new exploration permit, the Bamfele Permit, which covers an area of 99.94 km2 and adjoins the southern boundary of the Kada Permit.

Upon grant, the Bamfele Permit will form part of the Kada Joint Venture, effectively doubling the Kada gold project area to 200 km2.

The Ministry of Mines and Geology has advised that they expect to issue the Bamfele Permit in approximately one month.

While little previous exploration seems to have been conducted at the Bamfele Permit, the company considers the addition to be strategically beneficial given its potential prospectivity.

The Bamfele Permit lies on the Siguiri Mine Trend and the gold-in-soil anomalies located in the Kada Permit are likely to extend to the south and into the Bamfele Permit. A granite intrusion that lies in the Bamfele Permit, and which lies approximately 2.5 km southwest to the Newmont gold resource within the Kada Permit, is regarded a priority area for exploration.

Due diligence

The company’s due diligence on the Kada gold project is progressing as planned. Golden Rim Resources’ Burkina Faso country manager Richard Zongo has completed a site visit to the project. Of note, it has been confirmed that the area has only been subjected to minor artisanal mining. Generally, the artisanal mining is contained to shallow pits of between 1 m to 3 m depth and as a result, the underlying Newmont gold resource, which extends approximately to a depth of 100 m, remains largely intact.

Mineral Resource consultants, RPM Advisory Services (RPM), have completed a review of the previous drilling conducted by Newmont at the Kada gold project and have provided recommendations on the verification/confirmation work required as part of the company’s due diligence.

Read more news from Guinea

RPM has recommended that three, 150-m-deep, diamond holes be completed as twin holes to the Newmont holes located in the centre of the Newmont gold resource, namely:

  • NSAC066 (27 m grading at 4.4 g/t gold from 96 m);
  • NSC001 (15 m grading at 2.4 g/t gold from 83 m and 12 m grading at 3.5 g/t gold from 118 m); and
  • TC6 (32 m grading at 1.3 g/t gold from 68 m and 19 m grading at 2.7 g/t gold from 112 m).

A 450 m diamond drilling program, as part of the company’s due diligence investigations, is planned to commence within the next few weeks. During Zongo’s site visit, no restrictions to site access were identified.

Kada project at a glance

The Kada gold project is an advanced gold project, with the Kada Permit having previously been explored by Newmont. Newmont completed 33 857 m of drilling (297 holes) and outlined a non-JORC gold resource.

With infill drilling, Golden Rim Resources believes it can calculate a maiden JORC mineral resource at the Kada \project in the near-term.

There is considerable exploration upside at the Kada project as the gold mineralisation in the Newmont gold resource area remains open along strike and at depth. Approximately 90% of the gold-in-soil anomalies at the Kada project, including sample sites that have returned values up to 22 470 ppb gold (22.5 g/t gold), remain untested.