In the first half of this year, TSX-listed Ghana-focussed gold explorer Xtra-Gold produced 1 098 oz of raw gold and sold 1 162 fine ounces at an average price of $1 928/oz, thereby increasing the company’s cash on hand (excluding restricted cash) to $5.7-million, from $4.7-million at the end of 2021.
Also during the first half, the company successfully confirmed, through drilling, the down-plunge continuity and multishoot geometry of the recently identified Boomerang East gold zone on June 23.
Xtra-Gold also completed, using in-house drill crews, the drilling of 24 diamond core boreholes, totalling 4 075 m. These included 12 holes to a depth of 2 384 m on the recently defined Boomerang East resource expansion target, and 12 holes to a depth of 1 691 m on the grassroots Cobra Creek (Zone 5) auriferous shear system.
Xtra-Gold is involved in several exploration activities in Ghana, including a review of existing geological data, grid establishment and soil geochemical sampling, geological mapping, geophysical surveying, trenching and pitting to test gold-in-soil anomalies.
The company is also conducting diamond core and reverse circulation drilling to test targets followed by infill drilling to define a mineral reserve.
Xtra-Gold’s mining concession portfolio currently comprises 225.87 km2, including 33.65 km2 for its Kibi project, 51.67 km2 for its Banso project, 55.28 km2 for its Muoso project, 44.76 km2 for its Kwabeng project and 40.51 km2 for its Pameng project.
At its Kibi project, Xtra-Gold plans to follow-up trenching of Zone 1, and three early-stage gold showings to guide future mineral resource expansion drilling efforts; as well as prospect, conduct reconnaissance geology, hand auguring and/or scout pitting, and trenching of high priority gold-in-soil anomalies and grassroots gold targets across the extent of the Apapam concession.
Also at Kibi, the company intends to conduct a diamond core drill programme of about 15 000 m, at an estimated cost of $750 000, using the company’s in-house operated drill rigs.
This consists of a combination of follow-up drilling of early-stage gold targets and scout drilling of prospective litho-structural gold settings within the mineral resource footprint area, as well as scout drilling of new grassroots gold targets across the Apapam concession.
At the Kwabeng project, Xtra-Gold plans to continue with geological compilation, prospecting, soil geochemical sampling, hand augering and/or scout pitting, and trenching to identify and/or further advance grassroots targets.
The company also intends to continue with placer gold recovery operations.
At its Pameng project, Xtra-Gold plans to progress with geological compilation, prospecting, soil geochemical sampling, hand augering and/or scout pitting, and trenching to identify and/or further advance grassroots targets.
For the Banso and Muoso projects, Xtra-Gold is looking to continue with geological compilation, prospecting, soil geochemical sampling, hand augering and/or scout pitting, and trenching to identify and/or further advance grassroots targets, as well as continue with placer gold recovery operations at these projects.
Xtra-Gold estimates $500 000 for the cost of soil sampling, hand augering and/or scout pitting, and trenching at its Kibi, Kwabeng, Pameng, Banso and Muoso projects. Another $750 000 is earmarked for drilling, $750 000 for administration and $250 000 for stock-based compensation.
Further, the company states that, as part of its current business strategy, it plans to continue engaging technical personnel under contract where possible as Xtra-Gold’s management believes this strategy, at its current level of development, provides the best services available in the circumstances, leads to lower overall costs and provides the best flexibility for its business operations.
“We anticipate that our ongoing efforts will continue to be focused on the exploration and development of our projects and completing acquisitions in strategic areas. We will look to acquire further interests in gold mineralised projects that fall within the criteria of providing a geological basis for development of drilling initiatives that can enhance shareholder value by demonstrating the potential to define reserves.
“We continued with our recovery of placer gold operations at our Kwabeng, Banso and Muoso properties in 2020. We contract out as many services as possible on our placer gold recovery operations to local Ghanaians in order to maximise cost efficiencies,” the company notes.