Africa has certainly had its time in the sun as a global leader in gold production year after year, producing roughly 30% of all gold annually. South Africa has long been heralded for its prolific nature, but high costs and mines approaching the end of their lives has experts doubting how much longer South Africa will retain its spot near the top of the ranks.
That is not to discount the rest of Africa, however. The country is flooded with mineral explorers with the west side of Africa proving substantial reserves and becoming a hotspot for further drilling, exploration and production.
Aiding in proving the expansiveness and high grades of gold in the ground in West Africa, Vancouver-based Roxgold, Inc. (TSX-Venture:ROG) has committed its focus to the area of western Burkina Faso, West Africa. Roxgold controls six properties in Burkina Faso and finds itself surrounded by mines that are either in production or construction at this point.
Surrounding projects include Iamgold’s Essakane Mine, High River Gold’s Taparko and Bouroum Mines, Cluff Gold’s Kalsaka Mine and Samafo’s Mana Mine. Also in the region are four advanced exploration projects which, when in production, will define the area as an extremely formidable gold producing hotbed in Africa. This goes without mentioning Roxgold bringing its projects to production.
Roxgold is moving smoothly through its drilling program on its optioned Yaramoko gold concession in Burkina Faso. Roxgold Inc. has assumed operatorship of the exploration programs on the properties optioned from Riverstone Resources Ltd. by fulfilling its vesting requirements on the concession via cash and shares being submitted to Riverstone as well as incurring over $1.5 million in work expenditures. Moreover, with regards to other work commitments, Roxgold is ahead of schedule and still holds more than $5 million in working capital.
Wednesday, the Company released assays from 13 of the 44 diamond drill holes drilled in June through August on Yaramoko. With visible gold seen in several zones, and core drilling focused on defining high-grade gold intercepts in reverse circulation holes drilled earlier in the year, the reports did not disappoint. While many cuts were impressive, the 13 holes were highlighted by drill hole DDH-022 intercepting 62.74 g/t gold over 16 metres, including 226.89 g/t over three metres.
Shares of Roxgold have been on a solid climb in 2011 and came out of the gate gapping upward again on booming volume Wednesday morning. Apparently, profit taking set in by the end of the day as not only did Roxgold give back the more than 10% which it gapped at the bell, but fell to a discount compared to Tuesday’s close. Shares fell 14.29% to close Wednesday at 78 cents.
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