Xtra Gold Resources (XTG-T) has released a maiden resource estimate for its Kibi gold project, in Ghana.
The lode gold project hosts indicated resources of 278,000 oz. gold in 3.38 million tonnes grading 2.56 grams gold, using a cutoff grade of 0.5 gram gold. Inferred resources add 147,000 oz. gold in 2.35 million tonnes averaging 1.94 grams gold. Grades were capped at 20 grams gold.
The near-surface resource encompasses five deposits with a combined strike length of 1.6 km that Xtra has discovered at Kibi. The estimate is based on 190 drill holes totalling nearly 35,000 metres of mostly diamond drilling, as well as some trenching. More than three-quarter of the indicated resource is contained in the Big Bend deposit, while the East Dyke deposit holds the remainder. Both extend to 350 metres depth, while inferred resources are hosted in the smaller and shallower Mushroom, South Ridge, and Double 19 deposits. The deposits are closely spaced together (200 metres or less) in the northeast area of the project in Zone 2, except for Double 19, which is 500 metres to the southwest, in Zone 3.
In a press release, Xtra Gold president and CEO Paul Zyla noted that the discovery cost per oz. of gold at Kibi, which Xtra first drilled as a greenfields project in 2008, is only US$20, and that the resource has room to grow.
“We see this initial resource as a significant starting position and, with all the mineralized bodies remaining open in several directions, we are extremely encouraged with the potential to expand their respective resources with further drilling,” Zyla said.
Most of the resource consists of sulphide ore, with a small proportion being oxide or transitional. Metallurgical test results released last October showed that cyanidation recovered 97% of the gold in a combined sulphide/oxide sample.
The mineralization is hosted in belt-type granitoids within quartz vein sets.
Kibi is part of the Kibi-Winneba greenstone gold belt in Ghana, an underexplored belt in the country's east that runs parallel to the prolific Sefwi, Asankrangwa and Ashanti gold belts that hold world-class mines owned by majors such as Newmont Gold and Anglogold Ashanti.
The Kibi area has mostly been known for alluvial mining in the past.
Xtra has five mining leases totalling 226 sq. km at the north end of the Kibi belt, including the 33.7-sq.-km Apapam concession that hosts the Kibi project. The government of Ghana has a 10% free carried interest Xstra's Ghanaian subsidiary, which holds all of Xtra's projects.
Xtra Gold recently traded at 85 cents in a 52-week range of 65 cents - $1.76. The company, which listed in an IPO on the TSX Stock Exchange in 2010, has 44.6 million shares outstanding.
2013 Mining Markets. All Rights Reserved.