Firefinch Ltd (ASX:FFX) (FRA:N9F) (OTCMKTS:EEYMF) is higher after discovering a new, very high-grade zone 250 metres south of K3 prospect within its 100%-owned Finkola permit – part of the Massigui Project which adjoins the Morila Gold Mine tenure in Mali.
Drilling intersected 21 metres at 13.45 g/t gold from 110 metres, including 4 metres at 46.45 g/t from 114 metres and 3 metres at 16.1 g/t from 121 metres and this represents the company’s best intercept drilled to date.
Notably, this is the first hole drilled to investigate an aircore anomaly extending from the south end of the K3 prospect and the company plans to complete additional drilling to test the area immediately around this intercept.
The K3 prospect is part of a group of targets close to the N’Tiola, Viper and Koting satellite deposits and is just 20 kilometres from the Morila plant and 2 kilometres south of the Koting deposit.
Shares have been 12.5% higher in early trade to A$0.405, a new high of almost three years while Firefinch’s market cap is approximately A$281.9 million.
“Potential source of oxide mill feed”
Firefinch managing director Dr Michael Anderson said: “This is the best intercept Firefinch has drilled to date.
“Of course, we are only just getting started, but what a fantastic early result from our drilling campaign.
“Finding and delineating a new potential source of oxide mill feed, on a tenement that is already moving through the process of gaining an exploitation licence, will provide additional flexibility to our mill startup.
“We look forward to keeping our shareholders updated as further results come to hand.”
Location of the K3 South prospect adjacent to NTiola, Viper, Koting and other prospects.
Implications for regional exploration
The discovery at K3 highlights that previous regional exploration by the previous owners of the Morila tenure – and by Firefinch on its tenure – is far from conclusive.
Similar terrains in West Africa have been successfully explored by systematic aircore drilling and this has not yet been completed at Morila and Massigui.
The company is confident that the high-grade intersection demonstrates the significant potential within Firefinch’s 685 square kilometres of tenure to find another goldfield beyond Morila.
Additional drilling is being planned to test the area immediately north, south and east of this intercept.