Ashanti Gold Corp (CVE:AGZ) has unveiled good news on metallurgical testing on mineralisation from its Kossanto East project in Mali.
The test work was carried out on oxidised and unoxidised mineralised samples from the Gourbassi East and West target zones. Ten samples representing a total mineralized mass of 90.8 kilograms (kg) were tested and with the exception of a single low-grade sample from Gourbassi West, the composite samples had gold recovery from between 85.8% and 95.4%.
"These first metallurgical tests results show that gold recovery at Kossanto East is high and in line with other gold deposits in the region," Tim McCutcheon, the chief executive, told investors.
"Additional testing will perfect the best methodology for gold recovery, and this will be a vital piece of information for a future planned preliminary economic assessment on the project."
The tests involved cyanidation and were conducted as standard 48-hour bottle roll tests. The firm said 1,000 grams of sample were added to a bottle along with water to 40% solids.
"Gold recovery appears to be relatively consistent across samples with no trends observed with respect to head grades. Blue Coast also noted that the Gourbassi East composites showroom for gold recovery improvement with additional testing," the company added.
It's been a busy week for the resource group.
On Monday, it posted new results from the Gourbassi West zone, where it has recently completed a 105-hole reverse circulation (RC) and diamond drill 12,283m drill program.
"Broad zones of mineralisation at or near surface over a large area along strike make Gourbassi West a promising target for further gold discoveries," said McCutcheon.
"While our focus at this point is mineralization that is potentially minable in an open-pit scenario, it is very encouraging to have so many holes end in mineralization at depth indicating significant potential for additional gold discovery."
Shares in Toronto added nearly 6% Friday to C$0.090.