Chesser Resources Limited (ASX: CHZ) is a company from the metals and the mining sector, actively exploring for gold in Eastern Senegal within the highly prospective Kedougou-Kenieba Inlier.
On 10 April 2019, Chesser Resources announced the result of the second set of assay results received from the Phase 1 RC drilling program at the Diamba Sud Project situated in eastern Senegal. The project covers an area of 53.2 Sq km over the gold-sustaining prospect of Kedougou-Kenieba Inlier, which consists of two blocks. These are DS1 and DS2 and is situated in the north and south respectively.
Senegal Mali Shear Zone (SMSZ) is a major regional structure with several multi-million-ounce gold deposits. Approximately 2 km towards the Senegal Mali Shear Zone, lies the flagship project of the company, “Diamba Sud Project.”
The company at present holds around 400 sq km of highly prospective ground in the world-class gold region that remained unexplored.
The assay results were obtained from the second and third reverse circulation (RC) drill traverse testing the extensive Northern Arc target. Several high-grade gold intercepts were found within the fresh rocks.
- From the previous drilling of 42 metres, a further 12 meters drilling resulted in 3.65g/t of gold. It also included additional drilling of 8 meters from 46 metres, where 4.47 g/t gold was obtained, with the hole ending in mineralization.
- From the previous drilling of 80 metres, a further 3 meters drilling resulted in 6.19g/t of gold. It also included additional drilling of 1 meter from 81 metres, where 16.1g/t gold was obtained.
- There was another drilling of 11 metres from 38 metres, where 3.54g/t gold was obtained. It also included further drilling of 2 meters from 58 metres, where 2.58g/t gold was achieved, with the hole ending in mineralization.
- Five metres drilling from the 70 metres resulted in 3.18g/t gold.
- Another 2 metres drilling from the 51 metres resulted in 5.52g/t gold.
- Six metres drilling from the 58 metres resulted in 3.18g/t gold.
- Seven metres drilling from the 71 metres resulted in 3.18g/t gold.
- Three metres drilling from the 80 metres resulted in 3.18g/t gold.
The company confirmed the successful completion of the drilling of 70 holes for 4,671 metres. However, the announcement covered only assay results from 16 holes. The results from the remaining 42 holes are still pending.
The company further confirmed that they have planned for an induced polarization (IP) geophysical survey over the Northern Arc target which is expected to commence by the end of April 2019 to assist the interpretation of the results and search for possible host structures.
For the half year ended 31 December 2018, the company made a loss of $1,361,550. The balance sheet of the company reported a fall in the net asset base, influenced by the fall in the total asset. The total shareholders’ equity was worth $3,987,052. By the end of the 1H FY2019 on 31 December 2018, the company had a net cash and cash equivalent worth $1,153,577.
In the last six months, the stock generated a return of 12%. By the closure of the market on 10 April 2019, the closing price of the shares of CHZ was A$0.056. The company has a market capitalization of A$12.57 million and approximately 224.41 million outstanding shares.
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