Channel Resources (CVE:CHU) Thursday reported "favorable metallurgical test results" from its Tanlouka gold project in Burkina Faso, West Africa, sending shares higher.
Six cyanide bottle roll tests were conducted on both oxide and sulphide samples to assess the effects of primary grind, cyanide dosage and density at various leach times, the company said.
Highlights from the tests, at 72 hours, yielded gold recoveries ranging from 92.9 to 95.3 per cent in oxide samples from LO-1 to LO-6.
Sulphide samples LS-1 to LS-6 at 72 hours yielded gold recoveries of 84.7 to 92.3 per cent.
“These results demonstrate that gold mineralization is non-refractory and amenable to standard, inexpensive extraction technologies,” said Channel’s VP Cyrus Ameli.
He stressed that the company believes the recent "preliminary results can be further optimized” and that Channel will further follow up much more exhaustive metallurgical testing as the project advances towards feasibility."
According to the company, a series of metallurgical tests, including grind calibration, gravity test, whole ore leach, gravity tailings leach, coarse ore bucket roll tests and environmental studies, were conducted on composited drill core samples taken from near-surface oxide and deeper sulphide mineralization at the project’s Mankarga 5 deposit at Tanlouka.
Gravity separation tests were completed for each mineralization type to evaluate the potential for gravity recoverable gold from two grind sizes using a Knelson concentrator followed by a Mozley shaking table.
The oxide sample yielded a 45.8 per cent gold recovery from a 90 micron feed and a 29.6 per cent recovery from a 66 micron feed. The sulphide sample recovered 27.6 per cent gold from a 121 micron feed and 19.2 per cent gold from a 149 micron feed, the company said.
The company reported that bottle roll cyanide leaching of the tailings from the Knelson concentrator and Mozley table separation tests yielded gold recoveries of 92.2 per cent from the oxide, and 83.8 per cent from the sulphide samples.
Cumulative gold recoveries for gravity concentration followed by tailings leach were estimated at 95.2 per cent from the oxide and 89.1 per cent from the sulphide composite samples.
“We are fortunate to have both an oxide and sulphide components in this deposit,” said Ameli., adding, “That allows us a lot more flexibility in what processing scenarios we can apply in determining optimal development strategies."
Ameli added the most recent results were in line or surpassed the company’s expectations in most cases.
“Other projects in this part of Burkina Faso have demonstrated similar results to which these compare quite favourably," he said.
Channel said its activities at the Tanlouka gold project are focused on both advancing the Mankarga 5 deposit as quickly as possible through to feasibility and development, and demonstrating further exploration potential both along strike of the identified deposit and elsewhere on the permit.
The company said the “favourable metallurgical characteristics” of the Mankarga 5 deposit announced Thursday are a critical milestone in the development of the target.
“Metallurgical results are very important in terms of further de-risking the project,” noted Ameli.
“These results are a very important part of assessing the project [in terms of its value].”
Channel is expected to report a maiden resource estimate for the Mankarga 5 deposit in the near future. Over 23,000 metres of core and RC drilling conducted on Mankarga 5 over the past two years will form the basis of the report currently being prepared by AMEC Americas.
Highlights from recent drill results include hole DD39, which intersected 37.5 metres of 1.38 grams per tonne (g/t) gold and hole DD41, which hit 25.5 metres of 1.47 g/t gold.
The company is also poised to report on the results from 2,000 metres of core drilling recently completed in the area of the Mankarga 1 target. This was done to follow up on previous high-grade discovery holes drilled in 2010, and also to investigate possible continuity between Mankarga 5 and Mankarga 1.
In addition, the explorer said that results will soon be released from soil sampling programs underway on the Manesse and Tanwaka target areas to the north of the Mankarga Zone on the 79 square kilometre Tanlouka permit.
Future drill programs and other exploration activities are being planned for Mankarga 5 and other targets on the Tanlouka project, with results to be announced as they become available.
Channel’s shares were up 4.35 per cent as at 9:47 am EDT, trading at 12 cents.