Predictive Discovery ups its equity stake in Burkina Faso gold permits to 72.1%

Predictive Discovery (ASX: PDI) has increased its interest in the four joint venture permits within its Bonsiega Gold Project in Burkina Faso to 72.1%.

The company elected to increase its interest after joint venture partner Eldore Mining Corporation (ASX: EDM) did not contribute to the $1.4 million exploration expenditure on the permits.

“Given the very encouraging reverse circulation drilling results obtained to date on the Dave Prospect, and the scale of additional bedrock gold anomalism on the Laterite Hill Grid, we believe that the joint venture area holds strong potential for the discovery of a large gold deposit,” Predictive Discovery managing director Paul Roberts said.

The permits cover a number of promising prospects, including the highly prospective Laterite Hill Grid where more than 16 kilometres of strong bedrock gold anomalies has been identified.

Reconnaissance reverse circulation drilling over a 2 kilometre strike length at Laterite Hill has encountered numerous intercepts of shallow gold mineralisation at the Dave and Dave East Prospects.

Strong intersections include 26 metres at 2.7 grams per tonne (g/t) gold from 22 metres, 46 metres at 1.4g/t from 16 metres and 14 metres at 3.7g/t from 66 metres.

Predictive plans to continue its drilling program to extend the known areas of gold mineralisation.

In November last year Predictive began an extensive exploration program of up to 18,000 metres of reverse circulation drilling, 5000 metres of diamond drilling and 30,000 metres of power auger drilling to follow-up previous high grade gold intersections at the Bonsiega and Bangaba Projects.

Drilling at the Laterite Hill Grid will target more than 14 kilometres of untested bedrock gold anomalies where Predictive previously intersected some broad mineralisation at the Dave and Dave East Prospects.

The goal of the campaign will be to define a maiden gold resource by the September quarter of 2012.


Eldore Joint Venture Agreement

Predictive signed a Heads of Agreement covering Eldore Mining Corporation’s four exploration permits in Burkina Faso in January 2010.

Under the agreement, the company was able to earn a 60% interest in the permits by spending A$2 million by June 2012.

Predictive achieved the 60% earn‐in in late August although the $2 million expenditure had been completed earlier.

By the end of November 2011, the company’s cumulative expenditure on the permits had risen to over $3.4 million, resulting in cash calls to Eldore Mining Corporation totalling $635,386.

As a result of Eldore Mining Corporation not contributing to the $1.4 million in joint venture spending after Predictive achieved its 60% earn-in, its interest reduced to 27.9%. 


Well Funded

Predictive is sufficiently funded to continue its aggressive exploration campaign on the Bonsiega and Bangaba Projects with $6.3 million cash in the bank at the end of the December quarter.

The company raised an additional $5.2 million in August/September last year and, importantly, Predictive has no debt.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24743/predictive-discovery-ups-its-equity-stake-in-burkina-faso-gold-permits-to-721-24743.html