(MENAFN - ProactiveInvestors - Australia) Viking Ashanti (ASX: VKA) has delivered a second high grade gold intersection at shallow depth through drilling at its flagship Akoase gold project in southern Ghana, West Africa.
The 20.6 metre at 4.42 grams per tonne (g/t) gold intersection was contained within a broader altered and mineralised zone of 39.6 metres at 2.71g/t gold, at a depth of only 70 metres vertically below surface, at the highly prospective Alimac prospect.
Earlier this year Viking Ashanti reported its first high grade intersection at Alimac of 31 metres at 7.84g/t gold at less than 100 metres depth " the thickest and highest grade drill intersection recorded to date on the Akoase project.
The new hole is part of a 10-hole program of 756 metres of reverse circulation drilling and 959 metres of diamond drilling completed in mid-November.
The program targeted the down dip and along strike extensions of the higher grade mineralisation intersected in previous early 2012 drilling at the Alimac prospect.
Assays have been received from the first four reverse circulation pre-collared diamond holes drilled.
Two additional holes have returned encouraging grade and width intersections including 4.7 metres at 3.04g/t gold and 6 metres at 1.91g/t gold in one hole, and 7 metres at 2.39g/t gold and 4 metres at 1.65g/t gold in the second hole.
These assays have confirmed extensions of the mineralisation below existing drilling for at least a further 50 metres down dip.
The fourth hole, which has intersected 2 metres at 2.44g/t at the bottom of the hole, had to be terminated prematurely, before passing through the target zone, due to drilling difficulties.
Results for the remaining six holes are expected in the next two weeks.
Akoase
Akoase has a resource of 18 million tonnes at 1.2g/t for 704,000 ounces of contained gold, contained at Akoase East.
The ore is free milling which should provide for recoveries of 85% to 95%.
At Akoase East, drilling has been carried out over about 3.5 kilometres of strike, with mineralisation outcropping at surface.
Importantly, the resource is open at depth and to the northeast and has only been drilled to around 120 metres below surface.
Analysis
Today's high grade results transform the potential to expand the current 704,000 ounce resource.
Viking Ashanti is targeting a plus-1 million ounce gold resource at Akoase.
The company holds a strategic land position within the highly prospective Ashanti Gold Belt, in a politically and socially stable region with excellent mining infrastructure and services.
Ghana produced 3 million ounces of gold in 2011, with gold production increasing.
Akoase is located close to major mining projects including the 8.7 million ounce Akyem and the 5.6 million ounce Konongo gold deposits.
Importantly, a pathway to production is emerging at Akoase.
Also, demonstrating strong shareholder support, Resolute Mining has retained its 33% stake in Viking Ashanti following a recently completed 1:4 rights issue.
At current market cap. of circa 6M, the current valuation has under-valued Viking on an EV/Resource Oz relative to its peers.
