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Aureus Mining (LON:AUE, TSE:AUE) said the latest drill results from the Weaju gold target in Liberia confirm its open-pit potential.
The deposit, 30 kilometres north-east of its flagship New Liberty project, yielded some impressively high, near surface grades of the precious metal.
Drill results included 9.1 grams per tonne (g/t) over six metres from 43.7 metres, 6.9 g/t over 8.7 metres from surface and 5.6 g/t over 14 metres from 39 metres.
The Aureus team must now decide if it is feasible to truck the ore to New Liberty, or whether Weaju should be developed on a stand-alone basis.
“Whatever the ultimate size of the Weaju deposit, we think there is enough data to believe it will at least be a significant and valuable satellite pit to New Liberty,” said analyst Charlie Long of broker Sanlam.
The group expects to have compiled a resource for this portion of the property by the third quarter.
In all 15 holes were drilled in this the final part of 62-hole programme.
“Weaju has been a target for some time; historical drilling has previously returned high-grade gold intersections,” said mining house Ambrian.
However, there are strong indications of easterly extensions to the Creek and Ridge zones.
At the same time, pitting and trenching completed to the south-west of the Main zone highlights a potential extension of one kilometre, which will require follow-up.
Chief executive David Reading said: "The completion of the first phase drilling programme at Weaju has significantly advanced our understanding of the geological model and confirms the potential for open pittable ounces from this attractive target.
“The high grade, near surface intercepts are particular positive and during the rainy season we will define the potential size, grade and geometry of this deposit to determine if it would be feasible to truck the high grade material to New Liberty or whether the deposit is better suited as a standalone mine."
New Liberty has a gold reserve of 910,000 ounces at 3.3 g/t and resource of 1.14mln ounces and is being developed to produce an initial 120,000 ounces of the yellow metal a year.
“This [today’s update] is positive news for the company and highlights the potential in the portfolio for other gold resources to complement the developing New Liberty Project," said broker Investec.
“We look toward on-going news flow on New Liberty’s construction and finalising of finance that is the main value driver currently.
The shares edged up in London 3% to 33 pence in morning trade.
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