Concordia, through its wholly-owned Burkina Faso subsidiary Société Minière de Kerboulé (SMK) sarl owns a 100% interest in two contiguous licenses; ‘Araé’ and ‘Gassel Manéré’ (the Kerboulé property), covering a total of 399.5 km2. The Company has a commitment to pay a Net Smelter Royalty (“NSR”) of 3%. Half of this NSR may be acquired for US$1.5 million.
The Kerboulé property is located within the Palaeoproterozoic basement comprised of Birimian aged Djibo volcano-sedimentary Greenstone Belt of the central domain on the northern border of Burkina Faso. The license area is situated within a twenty-kilometer structural corridor along the Inata shear zone, a regional north-northeast trending structure containing the Inata gold deposit.
Gold mineralization on the property occurs primarily associated with quartz veining and attendant hydrothermal alteration. There are numerous artisanal diggings on the property, and historical exploration programs that included geochemical sampling, trenching and drilling, have identified at least eight areas with gold mineralization, including the Kerboulé-Yaléma trend extending over 5 km, in the southern part of the licenses.
Figure 1: Geochemical gold anomalies identified on Kerboulé Project
During 2011, the Company completed an airborne geophysical survey, trenching and structural interpretation; a regional ‘pit’ geochemical sampling and rotary air blast (“RAB”) scout drilling on four anomalous targets. During 2012, an aggressive follow-up exploration program that included trenching, ground geophysical surveys, auger sampling and reverse circulation (“RC”) and core drilling has been completed. A total of 10,367 m of RC drilling and 3,388 m of core drilling was completed in the Kerboulé area. Six targets were drilled within the five-kilometer Kerboulé-Yaléma mineralization trend, confirming and extending the known mineralization at Kerboulé Main, Kerboulé North, Kerboulé South, and Yalema. Results from Yaléma-East were not conclusive and further work is required to identify the source of the significant artisanal works. In addition to the above, limited drilling was carried out on new geophysical anomalies and a new area of mineralization has been identified at ‘Kerboulé Village South East’. These results are significant, as it confirms mineralization over a much broader zone than the known Keboulé-Yalema trend.
While no economic assessment has yet been completed on the targets to date, the broad zones of gold mineralization encountered in both RC and core are at grades and thicknesses consistent with existing open pit mining operations in West Africa. The drilling forms part of a program designed to extend the currently defined zones of mineralization at Kerboulé South, Kerboulé Main and Kerboulé North and define an initial mineral resource for the overall project.
The Kerboulé Project has a number of significant gold-bearing structures. The Company has outlined broad zones of mineralization at Kerboulé South and with the current program we now see much higher-grade mineralization at the Kerboulé North and Kerboulé Main target areas approximately 3 km to the north. The existence of mineralization and extensive artisanal workings at Kerboulé provides additional evidence for extensive, wide, disseminated gold mineralization over an extended strike. The exploration program has been designed to investigate the extent of mineralization within the Birimian greenstone volcano-sedimentary sequences on the Company's licenses, and, more specifically, extensions to the Inata shear zone, a regional north-northeast trending structure that hosts the nearby 3.46 million ounce Inata gold deposit. It is estimated that Birimian greenstones are host to approximately 7 million ounces of gold production per year throughout West Africa.
Figure 2: Drilling Highlights on Kerboulé- Yaléma trend
At Kerboulé South the highlights of the 2012 drilling program include 1.05 g/t over 21m (from core hole KBS-DD-003), 1.28 g/t over 22m (KBS-DD-004), 2.39 g/t over 20m (from RC hole KBS-RC-005), 7.43 g/t over 29m (KBS-RC-010), 1.27 g/t over 23m (KBS-RC-012), 1.94 g/t over 40m (KBS-RC-013), and 1.95 g/t over 22m (KBS-RC-017). Significant intercepts from this area are shown below:
Figure 3: Significant intersections at Kerboulé South with IP contours
Figure 4: Kerboulé North IP contours with significant intersections overlay
At Kerboulé North, highlights of the 2012 drilling program include 3.95 g/t over 38m (from core hole KB-DD-005), 4.0 g/t over 29m (from RC hole KB-RC-010), and 3.74 g/t over 5m (KB-RC-012). Significant intercepts from this area are shown below.
Drilling at the newly identified geophysical target at Kerboulé Village South East has given some promising highlights including 1.21 g/t over 18m (from RC hole KB-RC-023) and 1.47 g/t over 13m (KB-RC-023).
Drill results from the Kerboulé Main anomaly include 4.08 g/t over 5 m (from core hole KB-DD-001), 3.60 g/t over 5m (from RC hole KB-RC-002) and 2.81 g/t over 5m (KB-RC-003).
Figure 5: Kerboulé Main satellite image with significant intersections
At Yaléma, highlights of the 2012 drilling program include 15.79 g/t over 4m (from RC hole YAL-RC-001), and 8.51 g/t over 2m (YAL-RC-003). Significant results from this area are shown below.
Figure 6: Yaléma satellite image with significant intersections