LSE-listed Hamak Gold has signed a drilling contract with Cestos Drilling Liberia for an initial drilling programme to identify the depth and width extensions of significant gold mineralisation recently identified from channel sampling of the Ziatoyah bedrock outcrop exposure in an area of artisanal workings on Hamak’s Nimba licence, in northern Liberia.
Up to 450 m of drilling is planned from three drill holes as an initial test of the depth and width extensions of positive channel sampling results. Hamak said on October 13 that these returned 55 m at 0.63 g/t of gold, including 14 m at 1.98 g/t and 11 m at 0.99 g/t, including 3 m at 3.14 g/t of gold.
Hamak noted in a statement that the value of the drilling contract would be settled through a cash payment of $20 000 and up to 781 250 ordinary shares in Hamak Gold at an issue price of 10p a share, dependent on the satisfactory completion of the drilling programme.
Subject to positive drilling results, Hamak said a more extensive drilling programme would be designed to test the extensive 3 km by 1 km gold in soil anomalous zone that includes the Ziatoyah outcrop.
The company said trenching and channel sampling results to the north and west of Ziatoyah, located over identified strong gold in soil anomalies, have returned positive results, with trench extensions and additional trenches planned to fully define the anomalies prior to drilling.
“We will shortly begin a drilling programme . . . over the Ziatoyah outcrop in our Nimba licence. Cestos, which have agreed to accept equity for the majority of its drilling services, [is] helping to conserve cash for the company in these challenging equity markets,” Hamak Gold executive director Karl Smithson said.
The programme of up to 450 m of diamond core drilling will begin in late October.