HRA - RVS - New buy alert
posted on
Jan 18, 2010 12:42PM
Edit this title from the Fast Facts Section
This came out via "Special Delivery" a few minutes ago for anyone interested:
Riverstone Resources (RVS-V; up $0.025 on 342K at $0.245 ) was halted this morning ahead of an announcement that the company has returned high-grade gold results at the new artisanal workings area of its Karma gold project in Burkina Faso. Preliminary sampling at what is being dubbed the Nami site consisted of 51 samples along 600 metres of the 800 metre trend, with samples having been taken at depths up to 60 metres in shafts that have been dug by local miners. Some 14 of the 51 samples returned greater than 10 g/t gold, and many of these were over 20 g/t with the highest results being 98.5 g/t (+3 oz/ton) and 78.2 g/t gold. The samples are from within a 150-350 metre wide stockwork system (mass of narrow veins) that is centered on a breccia zone, which is fragmented rock that had more space to be filled by the gold bearing fluids and that typically contains higher grades. The breccia is up to 100 metres across and appears to average about 50 metres along the 600 metre sampled trend, which a large area for this type of material, and the halo of stockwork does contain a number of +1 g/t results. This combination indicates a fairly robust system. The zone cuts intrusive rock about 4 km north of the company’s Rambo zone that is also a higher grade area. The numerous samples taken at depth in the artisanal shafts confirms this is a primary zone rather than an area of surface accretion, and the number of high grade samples show it has the potential to make a big difference to the project. Though recent drilling results have indicated both an expansion and areas of higher gold grades within the bulk tonnage resource area, the project has needed a return to high grade testing to wake up the market to its potential. The Nami zone provides that. Drill testing is needed to properly assess the new zone, but its extent and the core of high grade material indicate it is an important addition to the system. The extent of the high grade results and the thickness of the breccia indicate Noni will add to the higher grade material established in the Rambo zone and will therefore be accretive to the established 1 million oz resource base, and the zone has potential to quickly add oz. With the trace of the new zone already established by the artisanal workings it shouldn’t take long to finish targeting and begin drill testing. Given the already established resource and with these new grades in hand we expect the market to recognize the potential before the drill results. Our outlook for RVS is strong speculative buy. http://www.riverstoneresources.com/