Total
0
Shares
Predictive Discovery (ASX:PDI) - Managing Director, Paul Roberts - The Market Herald
  • West African focused explorer Predictive Discovery (PDI) has secured the rights to acquire up to 100 per cent of the Koundian gold project in Guinea
  • Koundian is made up of four permits and, along with the company's other fully-owned projects, lies within the gold-rich Siguiri Basin
  • This basin is part of the West African Birimian gold belt and is home to significant gold deposits such as AngloGold's Siguiri Project
  • Historical exploration at Koundian by Drake Resources showed high-grade gold mineralisation
  • Drilling intercepts graded up to 19.8 grams per tonne of gold while rock chip samples peaked at 27.5 grams per tonne of gold
  • The company can acquire the first 90 per cent of the project by paying US$295,000 (~AUD475,000) over eight years, while the other 10 per cent will be converted into a royalty once the decision to mine is made
  • Company shares are in a trading halt while a capital raising is ongoing, they last traded for 0.6 cents each

West African focused explorer Predictive Discovery (PDI) has secured the rights to acquire up to 100 per cent of the Koundian gold project in Guinea.

The project

The Koundian Property Package is made up of four permits and covers 303 square kilometres. It is located within the gold-rich Siguiri Basin, which is part of the West African Birimian gold belt and home to significant gold deposits such as AngloGold's Siguiri Project.

The acquisition will bring Predictive Discovery's total permits in the basin to nine, covering almost 800 square kilometres. The company's other projects in the basin, Nonta, Kaninko, Boroto, Kankan and Saman are all 100 per cent owned.

Full-ownership of projects in the Siguiri Basin is a key company focus, as explained by Managing Director Paul Roberts.

"Koundian represents a rare and exciting opportunity in greenfields gold exploration - a strongly mineralised property in a highly prospective region with very extensive artisanal workings, limited past exploration and close to large known gold deposits," Paul stated.

"Acquisition of the Koundian Project is consistent with the Company’s broader strategy of focusing on the Siguiri Basin in Guinea through a 100 per cent-owned portfolio," he said.

In addition to its Guinea projects, Predictive Discovery has several joint-venture projects in Cote D'Ivoire and Burkina Faso.

Historic exploration

In 2014 and 2015, Drake Resources evaluated artisanal mines across most of the Koundian permit area through mapping, sampling and drilling.

Two small-scale reverse circulation drilling programs were completed that included a four-metre intercept grading 19.8 grams per tonne of gold from 50 metres.

In addition, results from rock chip sampling graded up to 27.5 grams per tonne of gold.

What's the cost?

Under the agreement with a group of Guinean individuals, Predictive Discovery can acquire up to 100 per cent of the Koundian Property Package.

The first 90 per cent of the project can be bought by paying a total of US$295,000 (~AU$475,000) in instalments over eight years, although it can be paid sooner. Once Predictive has paid the first US$115,000 (~AU$185,000) it will own 51 per cent of Koundian.

The final 10 per cent will be converted into a two per cent net smelter return royalty once the decision to mine is made. Half of that royalty can be bought by Predictive at any time for US$3 million (~AU$4.85 million).

What's next?

Predictive Discovery will begin fieldwork at the project this month with mapping across the entire project. In addition, a ground magnetics survey, rock chip sampling and a soil geochemistry survey will target a high priority area.

Once this initial program is completed, the company intends to conduct soil sampling and auger drilling over larger areas of the project. However, the timeframe for this will be subject to wet season conditions and COVID-19 limitations.

Furthermore, an aerial magnetic and radiometric survey is planned for later this year. Once results are received from the various surveys, the company will design an air core drilling program.

Company shares are in a trading halt while a capital raising is ongoing, they last traded for 0.6 cents each.


Subscribe


PDI by the numbers
More From The Market Herald
Arrow Minerals (ASX:AMD) completes RC drilling in Burkina Faso

" Arrow Minerals (ASX:AMD) completes RC drilling in Burkina Faso

Arrow Minerals (AMD) has completed a reverse circulation (RC) drilling program at the Dassa gold discovery.
Jindalee Resources (ASX:JRL) shares soar after Tesla’s “battery day”

" Jindalee Resources (ASX:JRL) shares soar after Tesla’s “battery day”

Jindalee Resources (JRL) believes the recent Tesla “battery day” has highlighted the potential of the McDermitt Project in Oregon.
Astro Resources (ASX:ARO) completes field mapping at Needles

" Astro Resources (ASX:ARO) completes field mapping at Needles

Mineral resource company Astro Resources (ARO) has completed field mapping at its Needles Property in Nevada, U.S.
Kairos Minerals (ASX:KAI) receives firm commitments for $9M placement

" Kairos Minerals (ASX:KAI) receives firm commitments for $9M placement

Kairos Minerals (KAI) has received firm commitments to undertake a $9 million share placement.