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Gold Firm Sees Spectacular Result in 1st Phase Drilling

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Canada-based Sanu Gold Corp. has completed Phase 1 drilling at its Bantabaye project in Guinea, West Africa. According to company President and CEO Martin Pawlitschek, the results are "spectacular."

Sanu Gold Corp. (SANU:CSE;SNGCF:OTCQB) is a Canadian junior mining, exploration, and development company with interests in three drill-ready gold exploration projects in Guinea. Its projects include the Bantabaye project, the Diguifara project, and the Daina project.

These three licenses cover an area of approximately 280 square kilometers, with the Bantabaye project located approximately 90 kilometers to the northwest of the Kouroussa township. The Bantabaye claim covers a total surface area of 99.9 square kilometers.

The firm's Diguifara Gold Project is located in the northeastern area of the Republic of Guinea, within the administrative region of Kankan and the prefecture of Siguiri, about 20 km northeast of the Siguiri Gold Mine operated by AngloGold-Ashanti.

The Daina gold project is located in the same northeastern area and also falls within the administrative Region of Kankan and the Prefecture of Siguiri.

The Catalyst: 'Spectacular' First Phase Drill Results

On July 27, Sanu Gold Corp. reported that it had completed the inaugural drill program on the company's flagship Bantabaye gold exploration permit. The permit, which lies on the western margin of Guinea's prolific Siguiri Basin, is located approximately 50 km south of the multi-million-ounce Lefa gold mine and 80 km north of the multi-million-ounce Bankan gold project.

A 2014 report from KPMG backs up these claims of the area's buried riches, stating that "Guinea has significant bauxite, iron ore, gold, and diamond reserves."

According to company CEO Pawlitschek, "This first round of drilling at Bantabaye, Sanu conducted a preliminary test on four of ten high-priority target areas, focusing on several zones along a multi-kilometer long mineralized fault system crossing the northern block of the permit."

He explains that drilling "intersected broad zones of near-surface gold mineralization in three of the four target areas tested, including a high-grade discovery at Target 2, which is open in all directions. A grade of 11.4 g/t Au over 15 m from the first fence of holes ever drilled at Bantabaye is a spectacular result, and we look forward to continuing to test and expand this exciting discovery."

Why This Industry? Guinea Offers Rich, Historic Gold Deposits

"West Africa is the number one gold mining region in the world," Pawlitschek continues, "and Guinea is a vastly underexplored portion of the region. In the twelve months since Sanu has been listed, we have made near-surface, high-grade gold discoveries in our inaugural drill programs on two separate permits, Bantabaye and Daina."

"This is an enviable discovery rate and validates both our exploration methodology and the potential of our extensive landholdings in Guinea. We look forward to continuing to discover and delineate new gold deposits in this highly prospective region."

2014 report from KPMG backs up these claims of the area's buried riches, stating that "Guinea possesses major mineral, hydropower, and agricultural resources. It has significant bauxite, iron ore, gold, and diamond reserves.

The report explains that "Guinea has a number of gold mines and projects located in its northeastern region. Gold is becoming an important commodity in Guinea as international exploration funding to the country is increasing significantly."

Gwen Preston  of The Maven Letter  noted, "It's a good start, with a nice high grade within a wide zone."

A 2016 report on concurs, stating that "Guinea is a neighbor to top gold producers in Africa such as GhanaMali, and Burkina Faso." Like its neighbors, Guinea covers significant parts of the gold-rich Birimian greenstone belts. 

The report continued by saying, "The country has great potential as a gold producer." Sanu Gold Corp. notes that this potential has been shown by Guinea hosting large-scale industrial gold mines, including both (recently commissioned mines and mines) that have operated for over 20 years.

"The Mining of gold dates back to prehistoric times," the report stated. "Guinea occupies what was formerly known as the Asante Kotoko kingdom. The kingdom was known for producing gold that was exchanged during the great trans-Saharan Trade."

"In fact, it is believed that the ancient Buré Goldfields from prehistoric times cover most of North East Guinea and South West Mali. This is the area that hosts both the Tongoro gold mine in Mali and the Siguiri gold mine in Guinea today."

"It is actually believed that the name Guinea was derived from the slang word 'guinea' used to refer to gold producing regions in West Africa in the 15th century."

Why This Company? Much More to Drill

The inaugural drill program at Bantabaye delivered a new discovery at Target 2, along with highly encouraging gold grades and widths from Targets 3 and 7. At all three target areas, gold mineralization was hosted within a sheared felsic unit.

The drilling has also revealed a high variation of depth of oxidation along the structure ranging from 25 m to over 150 m from the surface, related to structural deformation and associated alteration and mineralization.

All drilling to date has been shallow and limited, leaving areas for immediate follow-up, with the highest priority around the Target 2 discovery. In addition, the entire Bantabaye Thrust Fault - Tinkisso Fault system requires additional surface work and step-out drilling. Further detailed work is also required to examine the potential for additional mineralization in laterite-covered areas between the currently identified targets.

Sanu Gold Corp. is now working toward a near-term follow-up drill program, subject to access, logistics, and availability of equipment during the wet season. In addition, infill geochemical sampling, mapping, and potential geophysical surveys are considered to further delineate targets.

The upshot is that there's likely considerable additional gold in the company's projects that has yet to be identified. When it's revealed, the upward pressure on company stock could be significant.

Why Now? Continued Good News

On June 7, The Maven Letter with Gwen Preston reported on older assays from another 19 drill holes at Bantabaye. That work focused on Targets 2, 3, 4, and 7 with 2,475 meters in 22 RC holes.

At Target 2, six RC holes had been completed on two 50-meter spaced lines. They returned 10-to-20-meter widths of good mineralization, even though the high grade had been mostly mined out in holes 5 and 6.

Preston noted that there was some good continuity developing, as shown by the cross-sections. Preston believed that Target 2 needs more scale-along strike and down dip before anything will be of interest, but she noted, "It's a good start, with a nice high grade within a wide zone."

While reporting on Target 7, Preston concluded, "Target 7 is different in that it's an intrusion rather than a shear, but it does seem mineralized, which is good in that it's further evidence that there's lots of gold in this system." 

Preston went on to describe the other targets, which you can read in her newsletter

Ownership and Share Structure

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*Share Structure as of 8/3/2023

According to Reuters, 16.85% of Sanu Gold Corp. is held by management and insiders. Director and Co-Founder Fatou S. Gueye has 7.34%, with 5.10 million shares. President, CEO, and Director Martin Pawlitschek has 4.17%, with 2.90 million. Executive Chairman Vince Sorace has 3.60%, with 2.50 million, and Director Galen McNamara has 0.97%, with 0.68 million.

The company reports that 20% is with institutional investors. Commodity Capital AG has 3.77%, with 2.62 million shares. U.S. Global Investors Inc. has 1.85%, with 1.29 million, and Palos Management has 1.15%, with 0.80 million.

There are no strategic investors of record. One fund that participated in the firm's February 2023 financing round recently sold its 1.8M share position over the course of a few days.

Sanu Gold Corp. has a market cap of CA$6.26 million, with 69.5 million shares outstanding, alongside 5.8 million warrants and 5.7 million options. 

As of March 31, the company had CA$2.3 million in the bank, with a monthly burn rate of CA$150,000. Its drilling costs vary by month depending on the total amount drilled, but its average all-in drill costs are US$120/meter.

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Important Disclosures:

  1. Sanu Gold Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Sanu Gold Corp.
  3. Owen Ferguson wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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