Awalé Resources Bondoukou Gold Project –Continuing to Define Strong Gold Mineralised Systems at the Fako Prospect within the Awari Shear Zone.
Awalé Resources Bondoukou Gold Project –Continuing to Define Strong Gold Mineralised
Systems at the Fako Prospect within the Awari Shear Zone.
Vancouver, BC, July 31 , 2019 – Awalé Resources Limited (“ Awalé” or the “Company”) (TSXV: ARIC) is
pleased to announce the end of a successful field season at its 100% Bondoukou Project, Côte d’Ivoire,
(Figure 1 and 1b). Further encouraging gold results have been returned for the remaining 5 t renches of
the 10 trench (883 metre) program at the Fako prospect, delineating a new mineralised system similar to
previously defined ‘Locality A’ (see Company News Releases dated March 3 and June 4, 2019).
Highlights from the 10 trench program include:
• BETR005 21m at 2 grams/tonne gold (“g/t Au”) from 36m with included 1m intervals at
11.5 g/t, 5.5 g/t and 5.4 g/t respectively.
• BETR003: returned 8m at 1.6 g/t Au and 17m at 2.6 g/t Au including 1m intervals at 10.5
g/t Au, 11.5 g/t Au and 4.8 g/t Au respectively.
• BETR007 30m at 0.4 g/t Au.
• BETR001 35m at 0.5 g/t Au.
Trench BETR007 has returned 30m at 0.4 grams per tonne g/t gold (Au) defining a broad altered and
mineralised system at ‘Locality B’ – thus defining a second gold mineralised alteration system at the Fako
prospect, which lies on the southwestern extents of the Awari Shear Zone.
Geology and alteration at Locality B is identical to the high grade intercepts at Locality A and mineralisation
remains open at depth and along strike , see figures 2 through 6 for detailed maps and cross sections of
both locality A and B.
Highlighted results from the trenching are follow up from previously reported RC and diamond drillhole
intercepts which included (See Company News Releases dated February 2 and August 1, 2018):
• BERC0008: 20 metres at 0.96 g/t Au (including 3m at 1.98 g/t, 4m at 1.62 g/t and 2m at 1.6 g/t Au)
from 60m downhole (hole ends in mineralisation)
• BERC0009: 7 metres at 1.2 g/t Au (including 1 metre at 5.6 g/t Au) from 16m downhole
• BERC0019: 18 metres at 1.0 g/t Au from 1m downhole
• BEDD0004: 1.07m at 15.7 g/t Au from 147.3m and 9m at 0.3 g/t Au and 10 metres at 0.4 g/t Au
from 153 and 165.8m downhole respectively.
• BEDD0003 - 8m at 6.2 g/t Au (from 0m) Including 1m at 43.3 g/t Au from surface
• BEDD0005 - 4.5m at 1.4 g/t Au from 163m including 0.55m at 7.55 g/t Au downhole
Both these localities present as excellent potential follow up drill targets for further drilling in Q4 2019 -
with a revised ‘optimal’ drill direction from the new understanding of the geometry of mineralisation from
the trenching programs . Additionally, the trenching results from these two localities enhances the
prospective nature of other gold in auger anomalies along the 10 km long Fako -Bahilé trend within the
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Awari Shear (Figure 6 & 7), these will now be targeted for further exploration in the 2019 -2020 field
season.
The Bondoukou Project is developing potential as a new gold camp in west Africa with multiple targets
over three main structural orientations – this potential is discussed further in the technical background
below.
CEO Glen Parsons commented today:
Awalé has advanced two of its district scale projects being; Bondoukou, in the North East, and Odienné in
the North west of Cote d’Ivoire. At Bondoukou we are progressing multiple prospect areas to drill ready
status (as can be seen in Figure 7) , whilst we continue to further uncover new anomalies with our
systematic exploration along defined mineralised structures. At Odienné, we have recently reported 2
exciting drill ready targets at the Vakaba and Empire Prospects.
The 2019/2020 field season will be an exciting period for Awalé as we systematically test these targets
with the stated objective of multiple discoveries.
Work at Bondoukou will recommence once rains and water levels have abated, but at Odienné we expect
to be back on the ground early in September with easier access.
I look forward to updating the market with the anticipated progress.”
View attached figures: http://www.awaleresources.com/_resources/maps/Fako-Trenches-July.pdf
Table 1: Significant Intercepts - All Trenches.
Trench
ID East North RL From To Width Au (g/t)
BETR001 546572 927940 247.48 54 89 35 0.5*
Including 58 59 1 1.2
and 66 67 1 5.7
86 87 1 1
BETR002 545802 928575 280.84 39 41 2 0.7**
Including 50 51 1 0.8**
and 0 12 12 1.2**
BETR003 545839 928586 288.39 32 81 49 1.0*
Including 58 79 21 2.2**
and 63 64 1 10.5
65 66 1 11.5
73 74 1 4.8
90 91 1 2.4
BETR005 545880 928559 288.39 0 10 10 0.7*
Including 2 4 2 2.0**
and 6.8 8 1.2 1.0**
18 21.66 3.66 0.7*
30 63.2 33.2 1.5*
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36 57 21 2.0**
36 37 1 11.5
43 44 1 5.5
45 46 1 5.4
49 50 1 4.8
61 62 1 6.1
BETR006 546676 927939 247.48 38 45 7 0.3*
Including 41 42 1 0.9
and 68 75 7 0.3*
72 74 2 0.5**
BETR007 546748 927915 241.57 6.4 34.3 27.9 0.4*
Including 18 20 2 1.5*
and 29 34.3 5.3 0.61**
43 55.7 12.7 0.14*
BETR008 546567 927991 247.48 15 18 3 0.4*
Including 27.4 38.2 10.8 0.48*
BETR009 546637 927939 247.48 39 40 1 0.39*
BETR010 545924 928538 288.39 27.5 33 5.5 0.35*
Including 66 74 8 0.37*
and 67 68 1 1.93
79.4 82 2.6 0.53*
*Calculated at 0.1 g/t trigger including 2m internal waste
**Calculated at 0.5 g/t trigger including 2m internal waste
Other included intercepts are individual samples – all values reduced to 1 decimal
place.
Technical Notes on the Fako Prospects:
Two localities within the Fako prospect were selected for trenching where previous RC drilling delivered
broad intercepts which included 18m at 1g/t Au in hole BERC0019 (Locality ‘A’) and 20m at 0.9 g/t in
BERC0008 (Locality ‘B’). The trenches were planned to intercept similar or new m ineralisation as well as
understand controls on mineralisation intercepted in the RC drilling (Company News Release February 2,
2018). Some follow -up diamond drilling in these areas did not complete the understanding of the
structural framework associated with mineralisation ( Company News R elease August 1, 2018), the
trenching and associated mapping is expected to complete this understanding.
The rocks contained within the Awari Shear are lower Birimian and consist of greenschist facies altered
ultramafic, mafic to andesitic volcanic and volcaniclastic rocks. Rocks in the footwall of the shear consist
of an amphibolite to granulite facies metamorphic complex which is interpreted to predate the deposition
of the volcanic and volcaniclastic rocks contained within the Awari Shear. There is an abrupt change in the
metamorphic grade between these two major geologic units.
Initial interpretation from the trenches suggests the north dipping metamorphic complex forms a
competent footwall block and the mafic hanging wall rocks to form a brittle ductile environment. The
hanging wall rocks appear to form a sequence of SW verging folds which look to have shallow plunging
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shoots. This relationship seems clear in both trenched areas (approximately 1km apart) and similar
alteration systems are evident a further 6 kilometres to the southeast from geological mapping following
geochemical anomalism along this contact.
Alteration systems associated with mineralisation are defined by a marked increase in silica alteration
(quartz vein intensity), sulphide (>1%) and fuchsite and carbonate alteration (often manifest as iron
carbonates), the re is a correlation between higher gold grade and more intense deformation and
brecciation in the quartz veins. Felsic to intermediate dykes and intrusive rocks are commonly
encountered in the hanging wall of mineralisation. These intrusive rocks are interpreted to be late
Eburnean and perhaps are drivers of the mineralisation encountered at Fako. Further to this, similar
intrusive rocks have been found throughout the project area and are thought to play a major role in late
Eburnean gold mineralisation that occurs throughout the Bondoukou project area.
BONDOUKOU PROJECT BACKGROUND
Other than the clear evidence of significant high grade widths of mineralisation at the Fako Prospects, the
company has been pushing newfound understanding of the geology and structural framework of the
project farther afield, the regional scale potential of the Bondoukou Project is beginning to be better
understood. The company, as previously discussed has been applying a systematic approach from target
selection to drill testing.
The company has been applying recent advancements in understanding of west African Paleoproterozoic
gold mineralised systems. This work has highlighted the importance of late phase plutonism with
associated deformation architecture during the Eburnean orogeny and is apparent in the structural and
plutonic history of the Bondoukou geology.
Structural development and complexity from multiple deformation events prior to a major gold phase
through a major fluid pathway (structure) can be critical and is commonly the control of trap sites for gold
bearing fluids in world class Birimian Gold deposits such as Gounkoto -Loulo complex in Mali and Obuasi
in Ghana. The exploration approach used by Awalé is to identify, where possible, the primary fluid
pathways or principally a primary shear zone and associated structures as a principle target. Proximity to
and the identification of late intrusive rocks are also considered important.
With this criteria, preliminary interpretation of the Bondoukou geology highlights three prominent
kilometre scale trends at the boundary of Granite-granodiorite bodies to Greenstone mafics and volcano-
sedimentary rocks representing >70km strike kilometres of gold fertile structures (Figures 7 and 8). These
geologically significant trends are interpreted as potential tectonic boundaries and likely sites for strain
and structural complexity.
Awalé has confidence in the camp scale gold potential of the Bondoukou package. The company has been
working on prospect pipelines throughout the previo us field season and is moving multiple prospects
toward drill ready status.
Work completed at Fako, Samanda, Kodio and Yanti this field season has highlighted the camp scale gold
potential of the Bondoukou Gold Project. There is evidence for a protracted tectonic history at the project,
with multiple fluid pulses and gold bearing events. These fluid pulses have used the same structures (fluid
pathways) each time, and these are highlighted in Figure 7.
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Perhaps more importantly, the Fako trenching and mapping over the Junction/Kodio trend points toward
mineralisation being associated with late r phases of the Eburnean Orogeny. Th is late phase of
mineralisation is evident at other large gold camps in west Africa including Loulo/Gountoko, Tongon, and
Bonikro, where there is a temporal and spatial association of gold with late intrusive rocks and/or dykes.
During the late phases of an orogeny, the high temperatures and pressures that build during the orogenic
processes relax and a short, but important phase of extension occurs allowing intrusive bodies and gold
bearing fluids to enter the upper crust and form gold deposits. The intrusions act as heat pumps and
lubrication for a fluid flow system , perhaps also contributing gold bearing fluids . Significant g old
camps/deposits form in these settings.
CORPORATE UPDATE
The Company has issued the 572,000 bonus shares at 25 cent, which have now vested , and wishes to
update that further to its news release on May 14, 2018 whereby the Company, granted Andrew Chubb,
COO, 400,000 bonus shares of the Company and that under its policies, the Exchange approved only
290,000 shares to Mr. Chubb. The Company currently has sufficient shares outstanding to issue Mr. Chubb
the balance of 110,000 shares it originally intended Mr. Chubb to receive. The shares are being issued at
the originally deemed price of $0.25 per share.
As per the Management and Discussion Analysis for 31 December 2018, regarding the first Property
payment to Sandstorm Gold Ltd, Awalé has now completed the payment of 4,705,882 shares at C$0.085
cents (The share price at that time).
Pursuant to National Instrument 62-103 - The Early Warning System and Related Take Over Bid and Insider
Reporting Issues, Sandstorm is announcing the acquisition of an aggregate of 4,705,882 common shares
(the “Awalé Acquired Shares”) of Awalé, representing approximately 8.6% of the outstanding common
shares of Awalé (the “Awalé Shares”).
Prior to the acquisition of the Awalé Acquired Shares, Sandstorm held 4,337,200 Shares as well as
warrants to purchase an additional 500,000 Awalé Shares (“Awalé Warrants”), representing
approximately 9.8% of the outstanding Awalé Shares on a non-diluted basis. Assuming the exercise of all
500,000 Awalé Warrants held by Sandstorm, Sandstorm would h ave previously held an aggregate of
4,837,200 Awalé Shares, representing approximately 10.8% of the outstanding Awalé Shares (on a
partially diluted basis). Upon completion of the acquisition of the Awalé Acquired Shares, an aggregate
9,043,082 Awalé Shares are now owned directly by Sandstorm, representing approximately 18.4% of the
outstanding Awalé Shares. Assuming the exercise of the Sandstorm´s 500,000 Awalé Warrants, Sandstorm
would then hold 9,543,082 Awalé Shares, representing approximately 19.2% of the outstanding Awalé
Shares (on a partially diluted basis).
The acquisition of the Awalé Shares by Sandstorm was effected for investment purposes. Sandstorm may
from time to time acquire additional securities of Awalé, dispose of some or all of the existing or additional
securities it holds or will hold, or may continue to hold its current position.
The early warning report, as required under National Instrument 62-103, contains additional information
with respect to the foregoing matters and will be filed by the Company on Awalé’s SEDAR profile at
www.sedar.com.
Quality Control and Assurance
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All Trenches were continuously channel sampled in Saprolitic rock at the base or on their lower wall, a
c.15kg sample was taken for each meter and riffle split. The 2m composite samples were sampled and
split in a similar manner but with 15kg sampled for the 2 metre interval.
The Analytical work for geochemical samples and rock chip samples is being carried out at the
independent Intertek Laboratories Ghana Ltd. an ISO 17025 ( 2017) Certified Laboratory. Samples are
stored at the Company’s field camps and put into sealed bags until collected by Intertek from the
Company’s secure Bondoukou office and transported by Intertek to their laboratory in Tarkwa, Ghana for
preparation and analysis. Samples are logged in the tracking system, weighed, dried and finely crushed to
better than 70%, passing a 2 -mm screen. A split of up to 1,000 -grams is taken and pulverized to better
than 85%, passing a 75 -micron screen, and a 50 -gram split is analy sed by fire assay with an AA S finish.
Blanks, duplicates and certified reference material (standards) are being used to monitor laboratory
performance during the analysis.
ON BEHALF OF THE BOARD
AWALE RESOURCES LIMITED.
“Glen Parsons”
Glen Parsons, President and CEO
For additional information you are invited to visit the Awalé Resources Limited website at
www.awaleresources.com, or contact Karen Davies, Head of Investor Relations at Tel: 604.314.6270
Qualified Person
The technical and scientific information contained in this news release has been reviewed and approved
for release by Andrew Chubb, the Company’s Qualified Person as defined by National Instrument 43-101.
Mr Chubb is the Company’s Chief Operating Officer and holds an Economic Geology degree, is a Member
of the Australian Institute of Geoscientists (AIG), and is a Member of the Society of Economic Geologists
(SEG). Mr Chubb has 1 8 years of experience in international minerals exploration and mining project
evaluation.
End
Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable securities laws. Readers
are cautioned not to place undue reliance on forward -looking information. Actual results and deve lopments may
differ materially from those contemplated by such information. The statements in this news release are made as of
the date hereof. The Company undertakes no obligation to update forward- looking information except as required
by applicable law.
Cautionary Statement
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED
IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE
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