Sanu Gold Corp. (SANU:CSE; SNGCF:OTCQB; L73:FRA) commenced inaugural phase one drilling, to comprise about 19 holes over at least 2,000 meters (2,000m), at its Diguifara project in Guinea, as announced in a news release. Diguifara is one of this Canadian mineral explorer's three claim blocks totaling 280 square kilometers in the country's Siguiri Basin, a prolific gold district in West Africa. The other two assets are Daina and Bantabaye.
The company plans to drill test three priority targets, Dig 1, Dig 2 and Dig 3, which cover a cumulative strike length of 3.2 kilometers (3.2 km). Auger-in-saprolite samples from these targets showed gold grades up to 4.8 grams per ton (4.8 g/t). Along with augur sampling of bedrock, Sanu previously did extensive surface geochemistry and ground geophysical surveys at Diguifara.
Capital Ltd. will do the work, using a large multipurpose rig to drill air core and reverse circulation holes. This company is experienced in drilling large deposits in Guinea, and its investment arm Capital DI is a Sanu shareholder. Capital will collect samples on site and submit them to MSALABS in Bamako, Mali, for analysis.
Sanu Gold is excited to drill at Diguifara because it contains kilometer-scale geochemical and geophysical gold trends and strong gold mineralization in the weathered bedrock, President and Chief Executive Officer (CEO) Martin Pawlitschek told Streetwise Reports in an interview. He said the company could quickly monetize even a modest discovery of about 200,000–300,000 ounces (200–300 Koz) on the block.
Diguifara is close to AngloGold Ashanti Ltd.'s (AU:NYSE; ANG:JSE; AGG:ASX; AGD:LSE) Siguiri mine and mill, which produced gold since the mid-1990s, specifically 214 Koz last year. This South African gold miner owns 14% of Sanu.
"[AngloGold Ashanti has] a very hungry mill that needs satellite deposits now to feed it properly, and we're right in the range," said Pawlitschek.
In other news, Sanu announced separately, it delineated a prospective gold target, Salat East, at its Daina claim block, in the southeastern corner. There, artisanal miners started extracting mineralized material along a 500m-long, northeast-trending line of workings from a 5–8m wide structure dipping to the west.
"Salat East represents a target with possible significant gold ounce potential," Pawlitschek said in the release.
Sanu intends to evaluate this target, with rock chip sampling, geological mapping and geophysics, prior to deciding whether or not to drill it.
Working to Discover Deposits
At Diguifara, Daina and Bantabaye, Sanu Gold is looking to discover multimillion-ounce gold deposits. The trio, in the Siguiri Basin, is surrounded by world-class operating mines and major new discoveries. Société Minière de Dinguiraye SA's Lefa, Hummingbird Resources Plc's (HUM:AIM) Kouroussa and Robex Resources Inc.'s (RBX:TSX.V) Kiniero are some.
"We believe there is definitely that potential on all three blocks," Pawlitschek told Streetwise.
Guinea and West Africa are pro-mining and looking to expand the industry, noted Sanu's CEO. Since the mid-1990s gold has been mined in Guinea. Last year, gold output there was 10% higher than in 2022, making Guinea the world's 23rd largest producer of the metal, according to GlobalData.
With contributions from operations in Guinea, and Ghana, Burkina Faso and Mali, West Africa has become a key gold mining region, reports the data analytics firm. It forecasts total gold production in West Africa this year will be 11,830,000 ounces.
Gold Continues Historic Climb
The gold price broke through the US$2,800 per ounce (US$2,800/oz) Wednesday, marking its fourth consecutive monthly gain, Reuters reported on Oct. 31. After, gold retreated, to end today at US$2756/oz.
"You're going to see a bit more consolidation," David Meger, director of metals trading at High Ridge Futures, told Reuters. "We have a lot of major impactful news next week, the U.S. election on Tuesday, Fed meeting on Wednesday. So it's really not surprising to see some traders take profits."
As for gold equities, the S&P/TSX Venture Composite Index (SPCDNX) confirmed a multidecade bull run for junior, intermediate and senior mining stocks when it closed above 1,000 recently, Stewart Thomson with 321Gold wrote. The index is a key indicator of the health of the general gold, silver and mining stocks market.
A reversal of outflows from gold exchange-traded funds occurred during Q3/24, and inflows during the quarter amounted to 95 tons, as reported by the World Gold Council, reported Ron Struthers of Struthers Resource Stock Report on Oct. 30. Positive inflows during the quarter came from all geographical regions, for holdings of 3,200 tons.
"All regions saw positive inflows during the quarter, which ended with collective holdings of 3,200 tons," the newsletter writer added. "Next year we should be back to levels of 2020 and 2021. This will be fuel for a continued bull market."
Experts predict the gold price will continue its historic climb. Recently polled London Bullion Market Association members indicated they believe the gold price could reach US$2,940/oz during 2025, reported Stockhead.
Also for 2025, InvestingHaven predicts US$3,100/oz gold. This is based on leading gold price indicators, including heightened inflation and increasing central bank demand, and from patterns on long-term gold charts, it noted.
The Catalysts: Drill Results
With drilling underway at Diguifara, results from the program could catalyze Sanu's stock, said Pawlitschek. They will be released when ready, in about six to eight weeks.
Meanwhile, the gold company will tackle preparations for drilling of untested targets at Daina, to start soon. The scope of the campaign planned for Daina matches that being carried out at Diguifara.
"We have multiple targets that are going for 3, 4, up to 9 km strike lengths, some of them," the CEO said, referring to Diguifara and Daina.
Ownership and Share Structure
According to Sanu and Reuters, insiders, founders and close associates own 22% of the gold exploration company. These include President, CEO and Director Martin Pawlitschek with 3.11%, Cofounder and Director Fatou Gueye with 2.22% and Vince Sorace with 1.05%. High-net worth individuals own another 22%.
Strategic investors include AngloGold Ashanti with 14% and Capital DI Ltd. with 10%, both major players in Guinea.
Institutional investors, including Palos Management Inc., U.S. Global Investors Inc. and Commodity Capital AG, own 17% of Sanu. Retail investors hold the remaining 15%.
In terms of structure, Sanu has 238.5 million (238.5M) common shares issued, 10.9M stock options and 5.8M warrants. Its market cap is CA$17.88 million. Its 52-week range is CA$0.03–$0.15 per share.
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