Three AIM gold players update investors

AIM-listed gold companies, including Kalimantan Gold, Touchstone Gold and Patagonia Gold, traded in the black as they updated investors. Kalimantan Gold

Kalimantan Gold (KLG) has completed its community consultation in respect of planned exploration activities at the Jelai Gold project in east Kalimantan.

“We have full support from the local government, community and village leaders,” the company confirmed.

The project, which is a joint venture with Tigers Realm Minerals, will target high grade shoots at deeper levels of the epithermal gold - silver mineralization at the first proposed hole.

Touchstone Gold

Shares in Touchstone Gold (TGL) rose almost 10% as it revealed that it had intersected multiple gold intercepts in a previously undrilled area of the company's Rio Pescado property in Colombia.

The new zone, principally in the 1141 Zone area lies to the south of the Filodehambre area and the drill holes were completed as part of the ongoing stage 3 drilling programme.

The assays from the 1141 Zone area, including 9.13 gram per tonne (g/t) gold (Au) over 15 meters (m), 5.84 g/t Au over 21.75 m, and 4.03 g/t gold over 23.2 m, represent the highest overall gold grades the company has reported to date.  

"These results demonstrate continuity of the mineralised trend and the potential for further discoveries in the Rio Pescado Project," said the company.

Chief executive Dave Wiley reminded investors that while 80% of the property remained unexplored, they could take confidence from the existing data "which demonstrates that an extensive, near surface, and high-grade area of mineralisation has been discovered".

Patagonia Gold

Patagonia Gold (PGD) announced metallurgical test-work results on its Cap-Oeste gold-silver deposit in Santa Cruz province, Argentina.

Two testwork programmes, completed to scoping study level for both sulphide and oxide composite samples from the Cap-Oeste project, reported recoveries of gold (Au) and silver (Ag) to concentrate from sulphide samples of up to 88.3% and 95.5% respectively.

The Cap-Oeste gold and silver project is Patagonia Gold's flagship project, where an NI 43-101 compliant report and resource upgrade recently delineated a gold equivalent (AuEq) resource of 966,972 ounces AuEq within the indicated category, with a further inferred resource of 228,968 ounce AuEq.

However, the company stressed that the testwork was ongoing and that additional testing and optimisation work was required before a definitive process route and expected recovery could be determined.

Shares in the company edged upwards on the news.

Find out more about the yellow metal... Watch: Gold - the opportunities and threats in 2012.