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In The News - Burey Gold & Weatherly International

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Burey Gold††
ASX:BYR | A$0.054 | US$51m | Speculative Buy

Infill Results from Kebigada ahead of January 2017 Maiden Resource
Burey Gold has announced the results of 18 RC and 1 diamond drill holes from an infill drilling programme at the Kebigada Shear Zone and 54 shallow scout RC and 5 diamond drill holes from Douze Match. Both areas are located in its 55%-owned Giro Gold Project, located in north-eastern DRC.
COMMENT: It’s all looking positive at Kebigada, where the infill drilling is part of the programme to complete a Maiden Resource estimate by the end of January 2017. Drilling has extended the width along-strike and also indicated an increase of grade with depth. Results support our previous suggestion that drilling to date may have outlined a resource of 2.0Moz of gold at a grade of around 2.0 g/t. However, at Douze Match it is proving difficult to follow up the initial spectacular RC results announced from the Tango Shear Zone in June with successful diamond drill results; results from the first diamond drill hole were announced at the end of October, with an additional five holes in the current announcement.
Mineralisation at Douze Match is proving to be more complex than expected, and the company will now focus on using results from the current work programme, and perhaps undertaking more geophysics, to get a better understanding of the structural controls on mineralisation before resuming the programme.
Work is ongoing and results are expected from drilling to the north of Tango and first drilling at the Siona prospect before the end of the year. We look forward to this newsflow and the completion of the project’s Maiden Resource statement early in 2017 and we continue to recommend the company as a Speculative Buy.

Work at Kebigada is aimed at the completion of a Maiden Resource estimate by the end of January 2017 — This is the latest in a series of announcements regarding the resource infill drilling programme at the Kebigada Shear Zone. On 19 September the company announced that the programme had commenced and published results from the first seven RC holes on 31 October. Results of preliminary metallurgical test-work were announced on 8 November, indicating that recoveries of 90-91% could be expected from oxide and fresh rock using straightforward CIL processing at a grind size of 75 microns.
Mineralisation at Kebigada has been defined over a strike length of 1,500m, widths of up to 400m and remains open at depths exceeding 200m — The latest announcement included the results of one diamond drill hole and a further 18 RC drill holes for 2,169m. Given that previous drilling had already outlined a broad mineralised envelope within which there are a multiple mineralised structures, we consider that the current infill programme is primarily confirming the previously-outlined mineralisation; it is planned to be completed by the end of the year. As we have previously suggested, we estimate that drilling to date at the Kebigada may have outlined a resource of 2.0Moz of gold at a grade of around 2.0 g/t.
Drilling along the 6km-long Douze Match soil anomaly has been concentrated around the Tango Shear Zone — Initial spectacular assay results were reported from the Tango area of the Douze Match target, in the north of the Giro Project area, in June 2016. These came from a shallow, first pass RC drill programme, with assays reported for 3m composite samples focused on an area of historic Belgian, and current artisanal, workings. Extraordinary results from this included an interval of 15m @ 256 g/t.
A total of 151 shallow RC holes have been completed in this programme, including the 54 holes reported today — Most of these holes were initially drilled in the area around the historical Belgian and artisanal workings. Subsequently, further step-out drilling was undertaken with wide-spaced drill lines covering a strike length of over 1.5km. Mineralisation is generally associated with the contact between a granite intrusive to the north and the surrounding volcano sediments.
The initial RC results from the Tango Shear Zone were followed up with a 1,000m diamond drilling programme — This was to test the true width of the mineralisation, its orientation and continuity at depth. The first two holes were drilled in early September. Results of the first diamond drill hole were announced on 31 October, with the best interval of 2m @ 2.61 g/t giving an indication that it was not going to be easy to replicate the earlier RC results.
This announcement includes the results of a further five diamond drill holes in the Douze Match area — Two of the holes were abandoned owing to poor ground conditions before reaching the prospective contact zone. Results from the other holes did not match the previous RC results, with the best hole returning 3.95m grading 2.99 g/t.
Work at Douze Match to resolve structural complexities and test the remainder of the extensive soil anomaly — Early indications are that mineralisation is focused within a narrow, high-grade zone, within a broader 30m-wide shear zone, and that it plunges to the north-east. The company will evaluate all data once the current programme has been completed, and is also considering applying further geophysics to assess structural controls and the true orientation of mineralised structures in the area. Results from RC drilling over two drill lines testing the granite contact to the north of the Tango Shear are also planned to be announced before the end of the year.
The company reports that drilling has commenced at the Siona target area, 3km SW of Tango — This is another area of extensive historical Belgian workings and recent artisanal activity. A programme of shallow, scout RC drilling totalling 48 holes over 3 drill lines has been completed and was reported to have intersected sheared volcanics and quartz veins over widths of 40-50m over a strike length of 150-200m to the south of the granite contact. Assays are expected before the end of the year.
Burey’s current market cap is US$51m — The company has 1,257m shares outstanding, with 434m options exercisable at A$0.05/share until July 2017 and 80m options exercisable at A$0.03-0.05/share from December 2016 to December 2020. The company has a further 84.5m performance rights outstanding. Fully diluted shares outstanding are therefore 1,855m. The exercise of the options, which are all currently in the money, would bring in an additional A$25.6m. Cash resources at the end of September were A$9.6m.
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WEATHERLY INTERNATIONAL*†
LON:WTI | 0.825p | US$11m | Speculative Buy | TP : 1.2p

Logiman Announces Reduction in Shareholding
Weatherly International has announced that in mid-November Logiman reduced its shareholding in the company from 11.4% to 9.6%. As a result, its nominated board representative, Krzysztof Szymczak (Logiman’s MD), has resigned as a director. Logiman was the engineering, procurement and construction (EPC) contractor for the Tschudi Project development. As announced in July 2016, Weatherly has certain disputes with Logiman that are ongoing and which it expects to result in arbitration proceedings.
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