The Nangalasso Project (462km2) is located approximately 30km northwest of the Syama Mine (7.9Moz Au). The project is comprised of the Nangalasso Licence (95km2), the Doubasso application (116km2) and the Sotian Licence (250km2) and covers a northeast structural zone in the Birimian greenstone that is parallel, and of the same Eburnean age as the Tengrela-Syama structural trend. The structural corridor is host to several intrusions and strong deformation in the Birimian rocks, providing analogous geological setting for both Morilla and Tengrela style mineralisation across the project area.
Initial surface geochemical sampling on Nangalasso Permit (95km2) traversed structural targets interpreted from regional government geophysical surveys – a NNE-trending Eburnian structural corridor, and the margin of an outcropping granodiorite intrusive. Coverage was subsequently extended to follow gold anomalism northward and eastward.
Historical regional scale government soil sampling datasets had returned very little gold anomalism across the Nangalasso Project area. Regolith and landform mapping by IGS identified that the surface at Nangalasso is primarily transported depositional material deposited over laterite crust (cuirasse), with cuirasse exposed in several areas. The cuirasse is interpreted to be depleted in gold in the weathered profile, combined with the depositional cover makes soil geochemistry ineffective in the area.
IGS focussed on sampling of large termite mounds (termitaria) where the size of the termitaria indicate that termites are excavating down to the water table, and raising material from below the depleted and transported profile. The 1,916 Nangalasso termitaria sample results peak at 1,370ppb.
Two parallel termitaria gold anomalies are defined by The Company’s work at Nangalasso, each extending 6km NNE from the granodiorite intrusive to the permit’s northern boundary, where metasediments with strong foliation/deformation and minor quartz stockworks outcrop near artisanal workings. Limited rock sampling of these features returned anomalous values up to 0.6ppm Au.
Auger sampling across the two Nangalasso gold anomalies comprised 799 sample sites, returned gold assay values up to 290 ppb, and confirmed expansive of gold anomalism beneath cover. An initial program of four lines totalling 1984m of Air Core drilling across the 2 Nangalasso gold anomalies produced significant results including: 1m of 7.8g/t near artisanal mining activities on the shared boundary with Sotian permit, and 3m of 7.84 g/t Au hosted in granodiorite at end of hole. Further drill investigation of these features is planned.
Sampling in the adjacent Sotian permit area extended the eastern Nangalasso gold anomaly’s length to 10km, and has defined a further termitaria gold anomaly propagating eastward from the same granodiorite intrusive. This gold anomaly is open and it peaks at 215ppb. Broad-spaced termitaria sampling was conducted to assess the remaining unsampled 80% of the Sotian permit area. These results are awaited. Further broad-spaced termitaria sampling has begun on an additional parallel structural corridor to the west in the recently acquired Doubasso permit.
IGS-Mali Geologist Malick Diop at termitaria sample site
IGS has identified potential for gold mineralisation on the Nangalosso Project associated with interpreted structural zones in the Birimian greenstones trend under relatively shallow depositional cover to the west of Syama. The structural trends identified are sub parallel to the better exposed and explored Syama–Tengrela structural zone that hosts multiple deposits. The 1.5Moz Au Nampala resource located 25km to the northeast of the project areas is on trend with an interpreted structure that follows closely to the Nangalasso–Sotian shared boundary.
The Company has secured the right to acquire 100% of the Sotian Licence under a lease-option agreement, whereby IGS leases the rights to explore and mine the mineral licence with annual lease payments, and maintains an option to purchase 100% of the Sotian licence at any time following the third annual lease payment.
Under the lease arrangement, IGS is required to pay annual lease payments over a three year period. Following which IGS can elect to exercise the option to purchase 100% of the Sotian Licence by payment of US$500,000 and grant of a 2% net smelter royalty (NSR) in respect of the Sotian Licence, with IGS retaining an option to buy back 50% of the NSR.
The Doubasso permit application extends IGS’s Nangalasso project westward. An interpreted structural zone parallel to that hosting the 1.5Moz Au Nampala resource 25km northeast of the project area is on trend with Doubasso permit where the structure is interpreted to be deflected around a intrusive – a position analagous to Nangalasso’s location.
The Company has secured the right to acquire 100% of the Doubasso Licence under a lease-option agreement, whereby IGS leases the rights to explore and mine the mineral licence with annual lease payments, and maintains an option to purchase 100% of the Doubasso licence at any time following the third annual lease payment.
Under the lease arrangement, IGS is required to pay annual lease payments over a three year period. Following which IGS can elect to exercise the option to purchase 100% of the Doubasso Licence by payment of US$400,000 and grant of a 2% net smelter royalty (NSR) in respect of the Doubasso Licence, with IGS retaining an option to buy back 50% of the NSR.
Nangalasso regional geology with Nangalasso Project gold anomalism in termitaria sampling and gold target zones
Competent person statement
The information in this report that relates to exploration results is based on information compiled by Mr Travis Schwertfeger. Mr Schwertfeger is the Chief Executive Officer of International Goldfields Limited. Mr Schwertfeger is a member of The Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Schwertfeger consents to the inclusion in the report of the matters based on information in the form and context in which it appears.