Following completion of the acquisition of Moydow Holdings Ltd. in July, 2022, Diamond Fields Resources Inc. has completed the initial drilling program at its now renamed Cascades gold project in Burkina Faso. The project has an indicated gold resource of 264,000 ounces (oz) of gold (Au) at 1.52 grams per tonne (g/t) and an inferred resource of 371,000 oz Au at 1.67 g/t Au.
Highlights
The Cascades gold project incorporates: the Wuo land licence (the Labola project) where a maiden mineral resource was reported by Diamond Fields in December, 2021; and the contiguous 243-square-kilometre Wuo land 2 licence on which Moydow acquired an option in March, 2022, and where multiple exploration targets have already been identified with remote sensing and fieldwork.Initial results from recently completed drilling at the Cascades gold project support the presence of a significant new gold zone within the Wuo Land 2 area — the TT-13 target. Results from first pass drilling at the TT-13 target include:
CS22-RC027 45 to 55 metres, 10 metres at 1.55 grams per tonne Au; CS22-RC028 25 to 29 m, four m at 2.10 g/t Au; CS22-RC028 38 to 54 m, 16 m at 1.26 g/t Au; CS22-RC029 27 to 36 m, nine m at 1.08 g/t Au; CS22-RC029 56 to 66 m, 10 m at 1.81 g/t Au.
In addition, infill drilling has added important further definition to Diamond Fields’ geological model based on historical drilling. High-grade mineralization intersected in the Western zone in CS22RC-003 including 104-107, three metres at 12.52 g/t Au from assays.Diamond Fields’ geology team is continuing to upgrade more than 20 new geological targets to drill-ready status.Scoping of environmental baseline studies has commenced, and a new CSR (corporate social responsibility) program launched at Cascades including drilling of the first community water well in the project area. Recent additional testwork supports the view that the gold is essentially free milling, in line with the regional metallurgy.
- The Cascades gold project incorporates: the Wuo land licence (the Labola project) where a maiden mineral resource was reported by Diamond Fields in December, 2021; and the contiguous 243-square-kilometre Wuo land 2 licence on which Moydow acquired an option in March, 2022, and where multiple exploration targets have already been identified with remote sensing and fieldwork.
- Initial results from recently completed drilling at the Cascades gold project support the presence of a significant new gold zone within the Wuo Land 2 area — the TT-13 target.
- Results from first pass drilling at the TT-13 target include: CS22-RC027 45 to 55 metres, 10 metres at 1.55 grams per tonne Au; CS22-RC028 25 to 29 m, four m at 2.10 g/t Au; CS22-RC028 38 to 54 m, 16 m at 1.26 g/t Au; CS22-RC029 27 to 36 m, nine m at 1.08 g/t Au; CS22-RC029 56 to 66 m, 10 m at 1.81 g/t Au.
- CS22-RC027 45 to 55 metres, 10 metres at 1.55 grams per tonne Au;
- CS22-RC028 25 to 29 m, four m at 2.10 g/t Au;
- CS22-RC028 38 to 54 m, 16 m at 1.26 g/t Au;
- CS22-RC029 27 to 36 m, nine m at 1.08 g/t Au;
- CS22-RC029 56 to 66 m, 10 m at 1.81 g/t Au.
- In addition, infill drilling has added important further definition to Diamond Fields’ geological model based on historical drilling. High-grade mineralization intersected in the Western zone in CS22RC-003 including 104-107, three metres at 12.52 g/t Au from assays.
- Diamond Fields’ geology team is continuing to upgrade more than 20 new geological targets to drill-ready status.
- Scoping of environmental baseline studies has commenced, and a new CSR (corporate social responsibility) program launched at Cascades including drilling of the first community water well in the project area.
- Recent additional testwork supports the view that the gold is essentially free milling, in line with the regional metallurgy.
John McGloin, chief executive officer] of Diamond Fields Resources, stated: “The discovery of a new gold zone at Cascades shows the effectiveness of the exploration process our experienced team have implemented as well as the significant potential to grow the project’s resource. The recent exploration campaign was professionally undertaken and provides valuable further data that will facilitate future exploration on the multiple new and already identified targets within the Cascades project. I would like to thank the local community for their support and we will continue to work closely with them as we conduct further work at Cascades and implement our CSR new program.”
Cascades project drill program details
Following a 2021 drilling program in an area of historical drilling at the Daramandougou and Wuo Ne target areas within the Wuo Land licence area, Diamond Fields announced a maiden mineral resource prepared in accordance with National Instrument 43-101 on Cascades. The mineral resource comprises that shown in the attached table.
Between May and July, 2022, a 4,975-metre reverse circulation drilling program was completed. The program incorporated infill resource definition and stepout drilling at the Daramandougou area and first-pass exploration drilling on two new previously untested targets in the newly acquired Wuo Land 2 concession (as announced on March 11, 2022), namely the TT-13 and the Big South targets. All holes were drilled at an inclination of 53 to 55 degrees and an azimuth of 120 degrees. Ore zones are generally subvertical with an NNE-SSW (north-northeast-south-southwest) strike. A breakdown of the drilling by area is given in the first attached table.
All holes were sampled at one-metre intervals. Initially composite samples have been generated for laboratory analysis for two-metre downhole intervals. The one-metre samples have been assayed for mineralized zones.
The TT-13 target was identified in a target generation exercise carried out in 2021. Significant mineralization was intersected in the exploration drilling at TT-13 and follow-up resource delineation drilling at the target area is recommended by the company.
Drilling at the Big South target tested a new, but already extensive, artisanal mining zone. Several of the 13 holes intersected a low-grade mineralized envelope coincident with the extent of the orpaillage. Further work is required to understand the mineralization controls in the area before returning to the target with the drill rig.
Infill and
stepout drilling at the Daramandougou target
Twenty-one reverse circulation holes were drilled at Daramandougou for an aggregate total of 2,454 metres. For the most part the drilling did not intersect new high-grade zones and the drilling is not expected to add significant new resource ounces within the existing resource envelope. However, the data are expected to help to strengthen the company’s geological model in this area, and this will be important for resource classification at Daramandougou. By way of example, hole CS22-RC003 tested a greater-than-100-metre gap in drilling at the southern end of the Western zone at Daramandougou between hole DRA21-014 drilled by Moydow in 2021 and LBLC08-006 drilled by High River Gold in 2008. Intersections in CS22-RC003 included the following:
CS22-RC003 40 to 60 m, 20 metres at 1.27 g/t Au;CS22-RC003 64 to 68 m, four metres at 2.1 g/t Au;
CS22-RC003 94 to 96 m, two metres at 3.8 g/t Au;CS22-RC003 102 to 114 m, 12 metres at 3.38 g/t Au (all fire assay).
- CS22-RC003 40 to 60 m, 20 metres at 1.27 g/t Au;
- CS22-RC003 64 to 68 m, four metres at 2.1 g/t Au;
- CS22-RC003 94 to 96 m, two metres at 3.8 g/t Au;
- CS22-RC003 102 to 114 m, 12 metres at 3.38 g/t Au (all fire assay).
The highest-grade mineralization in these intersections was 104 to 107 m, three metres at 12.52 g/t Au (from fire assays), occurs in a zone of quartz veining where the host metasediment unit transitions from sandstone to greywacke dominated lithology. DRA21-014 collared 60 metres to the north had previously intersected a maximum grade of 2.18 g/t Au (60 to 61 metres downhole). LBLC08-006 collared 55 metres to the south intersected a highest grade of 1.35 g/t Au. Preliminary modelling of the new results suggests likely continuity with the mineralized zone intersected in DRA-21-014 therefore a significant southerly continuation of the western zone at improved grades.
Other potentially significant intersections from the drilling at Daramandougou include:
CS22-RC002 three to 13 m, 10 metres at 0.94 g/t Au;
CS22-RC004 36 to 54 m, 18 metres at 1.36 g/t Au;
CS22-RC006 32 to 46 m, 13 metres at 1.31 g/t Au;
CS22-RC007 75 to 88 m, 13 metres at 0.73 g/t Au;
CS22-RC010 67 to 71 m, four metres at 1.53 g/t Au;
CS22-RC013 32 to 53 m, 21 metres at 0.63 g/t Au;
CS22-RC018 34 to 36 m, two metres at 3.03 g/t Au;
CS22-RC021 20 to 29 m, nine metres at 0.64 g/t Au.
- CS22-RC002 three to 13 m, 10 metres at 0.94 g/t Au;
- CS22-RC004 36 to 54 m, 18 metres at 1.36 g/t Au;
- CS22-RC006 32 to 46 m, 13 metres at 1.31 g/t Au;
- CS22-RC007 75 to 88 m, 13 metres at 0.73 g/t Au;
- CS22-RC010 67 to 71 m, four metres at 1.53 g/t Au;
- CS22-RC013 32 to 53 m, 21 metres at 0.63 g/t Au;
- CS22-RC018 34 to 36 m, two metres at 3.03 g/t Au;
- CS22-RC021 20 to 29 m, nine metres at 0.64 g/t Au.
Exploration drilling
Two new targets in the newly acquired Wuo Land 2 licence area, TT-13 and Big South were tested in a first pass drilling program with an aggregate of 22 holes. Target generation work during 2021 defined 22 exploration targets across the Wuo Land and Wuo Land 2 concessions. Most of these targets, including TT-13 and Big South, have seen no previous drilling.
The TT-13 target is six kilometres south-southeast and eight km south-southeast of the Wuo Ne and Daramandougou zones respectively, where the bulk of mineral resources was reported in December, 2021. At TT-13 a total of nine holes tested a northeast-southwest-trending shear structure where a 2022 field mapping program had delineated a structure over a strike length exceeding 1.8 kilometres. The zone is characterized by near continuous artisanal workings at surface. The TT-13 structure has been mapped for a strike length of approximately 3,000 metres. It runs parallel and to the east of the Daramadougou/Wuo Ne structure. The sampling campaign during quarter 1 of this year confirmed ore-grade mineralization in a number of artisanal working with grades up to 25.4 g/t Au.
Three holes in particular intersected significant mineralization in what appears to be a westerly dipping mineralization envelope up to 20 to 35 metres wide. Notable intersections are listed herein. The samples for these three holes were initially assayed by fire assay (FA) and selected mineralized sections were also assayed using bottle roll LeachWELL (LW) analyses. Both the fire assay and bottle roll assays are quoted herein, and it is noted that for each mineralized intercept the bottle roll assays returned a higher average grade than the fire assays.
CS22-RC027 45 to 55 m, 10 m at 1.55 g/t LW (1.38 g/t FA);CS22-RC028 25 to 29 m, four m at 2.10 g/t LW (1.56 g/t FA);CS22-RC028 38 to 54 m, 16 m at 1.26 g/t LW (1.2 g/t FA); CS22-RC029 27 to 36 m, nine m at 1.08 g/t LW (0.93 g/t FA);
CS22-RC029 56 to 66 m, 10 m at 1.81 g/t LW (1.39 g/t FA).
- CS22-RC027 45 to 55 m, 10 m at 1.55 g/t LW (1.38 g/t FA);
- CS22-RC028 25 to 29 m, four m at 2.10 g/t LW (1.56 g/t FA);
- CS22-RC028 38 to 54 m, 16 m at 1.26 g/t LW (1.2 g/t FA);
- CS22-RC029 27 to 36 m, nine m at 1.08 g/t LW (0.93 g/t FA);
- CS22-RC029 56 to 66 m, 10 m at 1.81 g/t LW (1.39 g/t FA).
Drilling at the Big South target tested a new, but already extensive, artisanal mining zone. The structure crosses the southern boundary of the Wuo Land licence and into the Wuo Land 2 licence area and may be an offset southerly continuation of the TT-13 structure. As with TT-13 a short mapping and sampling program in 2022 had confirmed high-grade mineralization in zones characterized by quartz veining and associated pyritization. Thirteen holes tested a three km strike length of this shear structure at wide spacing. Thus far only two-metre composited samples have been assayed. Most of the holes in the northern half of the zone intersected some low-grade mineralization within an envelop consistent with the area of the orpaillage workings. The primary one-metre samples from the mineralized envelope will be sent for LeachWELL bottle roll analysis during September.
While the extent and intensity of the artisanal workings in this target area, supported by Diamond Fields’ own mapping and sampling, point to a potentially important large, mineralized zone at Big South, geological field mapping of the mineralized structure will be needed here before the next round of drilling is planned by the company for this area.
Note on metallurgy
As part of QA/QC (quality assurance/quality control) program from the drilling and sampling a total of 499 one-metre primary samples were reassayed using the LeachWELL accelerated bottle roll technique. An additional fire assay was done on each of the bottle roll tails. The average percentage recovery from the bottle roll (versus the bottle roll plus tail fire assay) for the 499 samples was 86.8 per cent. Applying a cut-off grade of 0.3 g/t Au the average recovery bottle recovery is 89.5 per cent (183 samples). These data further support the company’s previously stated view that the material is essentially free milling, in line with the regional metallurgy.
General updates
Environmental baseline studies
The company has commenced the process of acquiring new and collating available historical environmental data for the project area. The company has engaged with an Ouagadougou-based environmental consultancy to assist with the scoping of a baseline monitoring program.
CSR
Diamond Fields enjoys good relations with the local communities and stakeholders in the Cascades project area. The company’s policy is to use local service providers and exploration personnel wherever possible, supported by experienced exploration personnel from outside the community who are able to lead and train local personnel where necessary. Completion of the drilling program without any lost-time injuries and no drilling downtime is testament to the professional implementation of company policies by the in-country management team.
Exercise of options
During the month of July, 2022, option holders exercised 2,730,631 share options with an exercise price of 14.5 cents per option, such that, as of the date of this press release, an aggregate of 181,670,852 common shares of the company are issued and outstanding.
Note on the quoted assay intersections
As stated herein, all drilling samples have been collected at one-metre intervals and some samples were composited for assay, using a variety of assay techniques. Where results from more than one assay technique are available the quoted intervals are annotated with FA or LW indicating fire assay or LeachWELL bottle roll assays respectively. When calculating intercepts, a cut-off of 0.3 g/t has been used and an internal dilution of up to three m allowed. All intercepts represent downhole widths and true widths may be less than the downhole widths.
Fire assay analyses were carried out at SGS Burkina SA Laboratory, Ouagadougou, which is independent of the company.
LeachWELL bottle roll analyses were carried out at Biggs Global Burkina Sarl, Ouagadougou, which is independent of the company.
David J. Reading, MSc, FIMM, fellow SEG, a director of Diamond Fields and a qualified person as defined under Canadian National Instrument 43-101 — Standards of Disclosure for Mineral Projects, has prepared or supervised the preparation of, or approved, as applicable, the technical information contained in this press release. Mr. Reading is satisfied that the data have been properly verified by the Diamond Fields geological team. Mr. Reading has over 40 years of 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.
About Diamond Fields Resources Inc.
Diamond Fields is a TSX Venture Exchange-listed exploration and mine development company focused on gold and other commodities in Africa. Following the acquisition of Moydow Holdings, the company holds interests in a portfolio of West African gold exploration projects, including the highly prospective Labola gold project in Burkina Faso. Labola has a mineral resource prepared in accordance with National Instrument 43-101 comprising 5.41 million tonnes of indicated resources at an average grade of 1.52 grams per tonne Au for a total of 264,000 ounces of gold; and 6.93 million tonnes of inferred resources at an average grade of 1.67 g/t Au for a total of 371,000 ounces of gold.
In Madagascar, Diamond Fields has an advanced high-grade hard rock zircon exploration prospect located in the west of the country, approximately 220 kilometres east of the port of Maintirano and close to a state road. The company acquired Beravina from Pala Investments and Austral Resources in 2016. In Namibia, the company owns several offshore diamond mining licences.
