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Contango in talks with third parties as Mali project continues to deliver positive results

16th February 2022

By: Marleny Arnoldi

Online News Editor

     

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London-listed Contango Holdings says results from its aero-magnetic studies have yielded multiple high-grade potential target zones on the Garalo-Ntiela gold project, in Mali.

The company says the resources on the 161 km2 licence area are proving to be considerably larger than originally modelled.

The results from the aero-magnetic studies, coupled with the results of a 50%-completed induced polarisation survey, enable the company to finalise a drill programme for 2022, targeting a mineral resource estimate declaration of at least 1.8-million ounces.

CEO Carl Esprey confirms that the company has enjoyed heightened interest in the project from third parties, given its potential scale. Discussions with local and international parties are still at an early stage, but certainly highlight the optionality Contango has with this project.

It also bodes well that the project is based in the Sikasso region of Mali, surrounded by several multimillion-ounce gold deposits and world-leading gold miners. 

The Contango board believes there is significant inherent value at Garalo-Ntiela and will expect any transaction it enters into to reflect this.

Meanwhile, Contango’s Lubu coking coal project, in Zimbabwe, remains on track for first production at the end of the quarter.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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