As you know, Alpha Exploration (ALEX.V) has drilled the Tolegimja VMS prospect, part of the Kerkasha project in Eritrea in the first quarter of this year. The drill program consisted of nine RC holes for a total of just under 1,900 meters (indicating the average depth of the holes was just over 200 meters), and Alpha Exploration has released the assay results from all nine holes.
The majority of the holes did contain mineralization and contained the metals that are typical for VMS mineralization as the five holes highlighted by the company as carrying the ‘best intervals’ contain gold, copper and zinc.
The 14 meters containing 0.5 g/t gold and 0.35% copper in hole 1 is decent but there’s hardly any zinc in there. The six meters containing 0.32 g/t gold, 0.77% copper and 1.04% zinc likely is the best interval and although this is the higher grade component of a wider 18 meter interval with an average grade of 0.16 g/t gold, 0.34% copper and 0.99% zinc. Hole 9 was also quite interesting with 26 meters containing 0.11 g/t gold, 0.38% copper and 1.67% zinc.
While the grade is relatively low in the other holes, we can say the drill program appears to be a success from a technical perspective. As CEO Michael Hopley states:
To intersect massive-and semi-massive sulphide mineralisation up to 26 meters wide in 2 separate drill holes in the first 9 drill holes at the Tolegimja Prospect is very encouraging. Now that we have confirmed the presence of VMS-style mineralization obviously, more drilling is warranted over this 2.7 km long prospect in the near future.
The first holes are almost never the best holes and encountering mineralized intervals over decent widths is a pretty good result for what still is a virgin discovery. Additionally, the first nine holes did not fully test the extent of the chargeability anomaly discovered during an IP geophysical survey in the third quarter of last year. Alpha Exploration will undoubtedly follow up on these discoveries once it has raised more cash. Alpha Exploration is still working on a raise priced at C$0.75. A first tranche was closed in April, allowing the company to add almost C$1.4M to its treasury. That will be helpful to solve the C$1M working capital deficit as of the end of March but fortunately a substantial portion of the accounts payables is related to the related parties so we can expect some flexibility there. Alpha Exploration is obviously very keen on continuing to explore the Kerkasha project to follow up on the series of discoveries made this year,
Disclosure: The author has a small long position in Alpha Exploration. Alpha is a sponsor of the website. Please read our disclaimer.
