True Gold Mining (TGM.V) has announced drill results from its Nami target on the Karma project in Burkina Faso, and these results are quite exciting, as the company has intersected a shallow but very high-grade oxidized zone. It’s very rare to see an intercept in an oxide zone of 6 meters at almost one ounce of gold per tonne of ore, and to put things in perspective, the other oxide zones of the Karma project have an average reserve grade of 0.89g/t.
The company seems to be quite upbeat about the potential of Nami and thinks it could be as large as the North Kao extension which has added a substantial amount of ounces to the overall Karma resource estimate. As True Gold will build a central processing facility at Karma, the development of these satellite deposits could be very cheap, as basically all you’ll need is a truck and some excavators.
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Disclosure: The author holds a long position in True Gold Mining. Please see our disclaimer for current positions.
