Diamond Fields Announces Maiden Mineral Resource for Labola Gold Project
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Diamond Fields Announces Maiden Mineral Resource for Labola Gold Project
Vancouver, B.C. (25 October 2021) – Diamond Fields Resources Inc. (TSX-V: DFR) (“DFR” or the “Company”)
is pleased to announce a maiden Mineral Resource prepared in accordance with National Instrument 43-
101 (“NI 43-101”) for Moydow Holdings Limited’s (“Moydow”) Labola Gold Project in Burkina Faso
(“Labola” or the “Project”). As described in the press release of August 25, 2021 (the “Initial News
Release”), DFR has entered into definitive agreements to acquire Moydow which has an option to own
100% of the Project (the “Transaction”).
Highlights (See Table 1 and Figures 1-3)
• Indicated resource of 5.41 million tonnes at an average grade of 1.52 g/t Au for a total 264,000 ounces
of gold; and
Inferred resource of 6.93 million tonnes at an average grade of 1.67 g/t Au for a total of 371,000
ounces of gold.
• The Mineral Resource Estimate (MRE) was estimated using ordinary kriging methodologies, standard
estimation practices and constrained by an open-pit evaluation based on a US$1,900 per ounce gold
price and reported using a cut-off grade of 0.5 grams of gold per tonne ("g/t Au").
• The MRE is based upon a total of 69,787 metres ("m") of drilling from 566 drill holes which includes
the recent Moydow, confirmatory, twin and infill drilling of 4739m for 31 holes (23 twin holes).
• Three mineralized zones have been outlined from the various drilling programs and each zone is open
in all directions. Extensive target generative work demonstrates many opportunities for resource
expansion which include extensions to the current pit constrained resources; zones with only widely
spaced drilling; extensions of known mineralized zones with no drilling; untested artisanal sites and
potentially new mineralized zones indicated by geophysical and geochemical anomalies.
• The Company’s future exploration and development programs, following completion of the
Transaction as defined in the DFR press release of August 25, 2021, will focus on resource expansion
opportunities with a view to producing an updated MRE and completion of a Preliminary Economic
Assessment.
“The completion of the maiden Mineral Resource is a major milestone in the progression of the Labola
Project and is a testament to the work completed by the Moydow technical team over the last year. The
positive results contained in the Mineral Resource Estimate confirm our belief that Labola is a highly
prospective project and an exceptional opportunity for future development. Labola is a project with
shallow, open pit resources of which 41% of those currently delineated are in the Indicated category. The
Project has over 30 km of potential strike length along three mineralized zones and many walk-up drill
targets which will enable rapid resource expansion. DFR would acquire, in addition to the maiden Mineral
Resource, an extensive database of historical information which will allow the Company to add value
directly through the drill bit and supporting technical studies as we progress along the pathway to further
development of the project” commented Al Gourley, Chairman of DFR.
The Transaction, as defined in the Initial News Release, is subject to approval by the TSX Venture Exchange,
required shareholder approvals, and completion of satisfactory confirmatory due diligence by DFR. The
Transaction remains expected to close in the first quarter of 2022.
Table 1.0. Mineral Resource for the Labola Gold Project, 25 October 2021**
Category Mineralization
(Mt)
Gold grade
(g/t Au)
Contained gold
(koz)
Indicated Resource 5.41 1.52 264
Inferred Resource^ 6.93 1.67 371
1. ** Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability. The
estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or
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other relevant issues. The Mineral Resources in this note were reported using CIM (2014) Standards on
Mineral Resources and Reserves, Definitions and Guidelines and adopted by CIM Council.
2. ^ The quantity and grade of reported the Inferred Resources in this estimation are uncertain in nature and
there has been insufficient exploration to define this Inferred Resource as an Indicated or Measured Mineral
Resource. It is uncertain if further exploration will result in upgrading the Inferred Resource to an Indicated or
Measured Mineral Resource category.
3. The Mineral Resource has been constrained by an open pit evaluation using a gold price of $1900 per ounce,
and then reported at a cut-off of 0.5 g/t Au.
4. Contained metal and tonnes figures in totals may differ due to rounding.
Moydow has estimated the amount of the resource that has been depleted by artisanal mining to be
approximately 341,000 tonnes at 3 g/t Au. The quantity of mined material has been calculated from
estimates of dump and leach pad volumes. The grade of the material mined has been estimated in the
range of 1.5-3.0 g/t Au and is based on an evaluation of extensive rock chip, channel sampling of artisanal
workings and selective sampling of adjacent dumps. The location of where the material has been mined
from is not known with any degree of accuracy. As such, the artisanal mining has not been deducted from
the Mineral Resource but noted here for reference.
Preliminary metallurgical results from historical metallurgical samples, supported by extensive LeachWELL
(proprietary accelerated cyanide leach technique) data from Moydow drilling samples, indicate that gold is
readily treatable by conventional cyanide leaching techniques after grinding to industry standard grind-
sizes of approximately 80% passing 120 microns. Recoveries are in the range of 90% and 98% in the oxide
zone and between 82% and 93% in the transition/sulfide zone.
The mineral resource estimate (MRE) for the Labola Project has been prepared by Mr. Ivor W.O. Jones,
M.Sc., FAusIMM, P.Geo, of Aurum Consulting, who is an independent Qualified person (QP) under NI 43-
101 guidelines. The maiden Mineral Resource and its preparation will be detailed in a technical report
prepared in accordance with NI 43-101 to be filed on SEDAR within 45 days of this press release.
The MRE has been prepared using grades with top-caps applied in a fairly standard grade ordinary kriged
estimation. Holes that had been twinned were removed, and replaced with the new drill data, but
estimates also cross-checked with just the old data with very similar results. This provided significant
confidence in the historical data. Validation included visual and statistical evaluations and considered to be
good. Classification of the MRE was based on the guidelines of the CIM and NI 43-101 to define and report
Indicated and Inferred Resources for the project.
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Figure 1: Location of historical and Moydow drill holes in the Labola project area
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Figure 2: Representative section of the mineralized zone at Labola with grade intercepts, wireframe in red
and MRE pit shell outline in black
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Figure 3: Outline of areas included in resources, targets for potential resource expansion and exploration
target areas
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Figure 4: Outline of potential resource expansion and exploration target areas, and showing significant
intercepts in drilling and 2021 drill collars
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About Labola
The Labola gold exploration project is in the Banfora greenstone belt of the West African Birimian
Supergroup in southwest Burkina Faso. Labola is approximately 450km west-southwest of the capital,
Ouagadougou, and 100km northeast of the Wahgnion gold mine, operated by Endeavour Mining (Q2, 2021
production of 41 000 ounces gold).
More than 65,500m of historical drilling (541 holes) has been completed across multiple drilling campaigns
by previous owners, High River Gold Mines Limited (“HRG”), later acquired by Nord Gold Plc, and Taurus
Gold Limited (“Taurus”), consisting of principally diamond and RC drilling (24,589m/39,339m, respectively).
Mineralization has been intercepted by historical drilling and outlined by previous artisanal mining in three
main zones over a 10 km strike length.
Moydow has explored the area since August 2020 including acquisition and compilation of all previous data
into a single database, interpretation of this data, target generation using the database and all the acquired
remote sensing information, a drilling program involving 23 twin holes and an additional six exploration and
infill holes. The database of historical information has been audited, correctly coordinated and the twin
drilling results demonstrate the validity of the previous data. The results of the Moydow drilling showed
strong reproducibility of the HRG and Taurus drill data in both terms of location of mineralization and
grade. Further, the brownfields exploration drilling showed good predictability of the location of
mineralization in extensional drilling to the mineral resource. The HRG, Taurus and Moydow data was
therefore taken as sufficiently accurate to be used in the estimation of the Maiden MREs for Labola.
Gold mineralization at Labola is related to quartz veining, areas of silica alteration and disseminated pyrite.
A previous ground IP survey highlighted the coincidence between mineralized zones and high chargeability
(sulfides) and resistivity (quartz veining and silicification) anomalies. This correlation outlines many
additional opportunities for resource expansion drilling in the future.
In addition to the preparation of the maiden MRE, Moydow has compiled, integrated, and assessed all the
available information and outlined future exploration targets based on each of the main data sets. Based
on this, Moydow selected targets and ranked them based on their perceived proceptivity as summarized:
• Priority 1 – Taurus Resource Targets.
• Priority 2 – HRG Resource Targets.
• Priority 3 – Mineralization Extensions.
• Priority 4 – Untested Workings.
• Priority 5 – Previous Drill Intercepts.
• Priority 6 – IP Targets.
• Priority 7 – Mineralization Trends.
• Priority 8 – Geochemical Targets.
• Priority 9 – EM targets.
The main targets are along the major interpreted central shear system encompassing the three mineralized
zones. There is also strong evidence that there are several sub-parallel, additional structures that also host
significant gold mineralization as shown by artisanal workings. These targets can be considered as clearly
defined for drill testing. Many of the targets are resource expansion opportunities as they are obvious
extensions to identified resources and include areas with only widely spaced historical drilling. Additional
targets include untested zones with artisanal workings and new zones as defined by soil geochemistry
and/or Induced polarization surveys. Labola therefore represents an advanced exploration project with
clearly defined drill targets that provide opportunities for exploration and resource expansion.
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Technical Information
Mr. Ivor Jones, BSc. (Hons), MSc, FAusIMM of Aurum Consulting. is an independent Qualified Person as
defined under NI 43-101 and directly undertook the preparation and estimation of the October 2021
maiden mineral resource estimate. Mr. Jones has reviewed and approved the contents of this press
release. Mr. Jones has over 40 years of relevant experience in geology, exploration, mining, resource
evaluation and management including operational and consulting experience in both open pit and
underground mines. He was previously a Group General Manager for Snowden Mining Industry Consultants
where he was responsible for the company's geoscience activities globally.
Mr. David J Reading, M.Sc., FIMM, a director of DFR and a Qualified Person as defined under Canadian
National Instrument 43 101 – Standards of Disclosure for Mineral Projects (“NI 43 101”), has prepared or
supervised the preparation of, or approved, as applicable, the technical information contained in this press
release. Mr. Reading has over 40 years’ experience in the mining industry covering all stages of mine
development, including exploration, feasibility, financing, construction, and operations. He has an MSc in
Economic Geology and is a Fellow of the Institute of Materials, Minerals and Mining and of the Society of
Economic Geologists.
DIAMOND FIELDS RESOURCES INC.
Sybrand van der Spuy, CEO and Director
Contact: +27 78 4558700
Michael Oke/Andy Mills: +44 20 7321 0000
Aura Financial LLP: www.aura-financial.com
Notes to Editors:
DFR is a TSX Venture Exchange listed exploration and mine development company with assets in
Madagascar and Namibia. In Madagascar, DFR is developing the Beravina Project, an advanced high-grade
hard rock zircon exploration prospect located in the west of the country, approximately 220km east of the
port of Maintirano and close to a state road. DFR acquired Beravina from Pala Investments and Austral
Resources in 2016. In Namibia, the Company owns several offshore diamond mining licenses including the
ML 111 concession which has a ten-year mining license, effective until 4 December 2025. In 2018 and early
2019 mining undertaken by a contractor on the Company’s ML111 license area produced two parcels of
rough diamonds totalling 47,318.41 carats.
Moydow is a privately owned, BVI registered, West African focused gold exploration business, which was
formed in 2019 and subsequently in 2020 acquired, from AIM listed Panthera Resources Plc, its interest in
the Labola project (Burkina Faso), followed by the Kalaka (Mali) project interest in 2021. At closing of the
Transaction Moydow would be controlled by DFR. Moydow has interests in gold projects in West Africa;
Labola in Burkina Faso, Kalaka in Mali, Dagma, Paimasa/Mint and Dext in Nigeria. Moydow has active
exploration programs underway in all three countries.
Website: www.diamondfields.com
The Company’s public documents may be accessed at www.sedar.com
Neither the 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.