High-Grade Gold Drilling Kicks Off in Guineas Siguiri Basin Amid Surging Demand

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Sanu Gold Corp. (SANU:CSE; SNGCF:OTCQB; L73:FRA) has commenced its 2024 Phase 1 drilling campaign at the Daina gold exploration permit. The region, located in Guinea's Siguiri Basin, is known for significant gold deposits. The drilling initiative is focused on five primary targets, including Daina 1 South, Daina 1 North, Daina 2, Daina 6, and the new Salat East target. These targets were selected due to promising results from earlier auger-hole and geophysical studies, showing up to three kilometers of potential strike length.

Highlights From The News Release: 

• Drilling up of five targets: The drill program aims to test up five targets defined at Daina, including Daina 1 South, Daina 1 North, Daina 2 and Daina 6, and the newly discovered Salat East target.
• Previous high-grade intercepts: As well as testing new undrilled targets, some holes will follow up on intercepts such as those from the Daina 2 target:
  • 21 meters (m) of 4.75 grams per tonne (g/t) gold (Au), including one m of 85.5 g/t Au (DAI-RC-004);
  • 15 m of 5.48 g/t Au, including one m of 78.4 g/t Au (DAI-RC-035-B).
• Emerging district: The Daina permit is located adjacent to large ground holdings being explored by major gold miners, including Anglo Gold Ashanti PLC, a strategic shareholder in Sanu Gold, as well as Resolute Mining and Endeavour Mining.
• Vectoring toward gold: The targets were selected based on strong auger-hole gold results along with prospective geochemical and geophysical trends observed for up to three kilometers (km) of strike length.
• 2024 phase 1 drilling program: Up to 3,000 m of air core and RC (reverse circulation) drilling in 25 to 35 holes is planned and commenced on Nov. 8, 2024.
• Assays pending: The first-ever drill program at the Diguifara permit is now complete, with assays from all 22 holes pending.

This program will utilize both air core and reverse circulation (RC) drilling methods, covering up to 3,000 meters across 25-35 holes. The campaign began on November 8, 2024, and will target previously identified high-grade zones and explore new areas. Notable past drilling at Daina 2 yielded significant intercepts, such as 21 meters at 4.75 g/t gold, including one meter at 85.5 g/t, and 15 meters at 5.48 g/t gold, with a high-grade section of 78.4 g/t gold. These promising results demonstrate Daina's gold-bearing potential, aligning with the mineral-rich geological characteristics of the region.

This region has seen increased exploration interest from major gold companies, with AngloGold Ashanti, Resolute Mining, and Endeavour Mining actively exploring neighboring sites. Sanu Gold's Daina permit sits in close proximity to these projects, benefiting from shared insights into the region's gold mineralization trends. As part of its Guinea operations, Sanu Gold has also completed its initial drilling at the Diguifara permit, with assay results from 22 holes expected soon.

Martin Pawlitschek, Sanu Gold's President and CEO, stated in the press release, "With the initial phase of drilling at Diguifara now completed with a total of 2,000 meters in 30 holes, the company is excited to be drilling at Daina, where auger gold results, rock chip sampling, and ground geophysics have contributed to the understanding of key targets, most of which remain largely untested."

The Market For Gold

Kitco's October 29 report highlighted gold's significant rally in 2024, with December futures nearing US$2,800 per ounce, driven by "a perfect storm" of geopolitical instability and robust central bank demand. According to Kitco, central banks, particularly in emerging markets, had been active buyers as they sought to reduce reliance on the U.S. dollar. This heightened institutional demand had sustained gold's appeal, particularly as the upcoming U.S. presidential election added further uncertainty. Kitco noted, "Geopolitical instability, anticipated monetary easing, and strong central bank demand" combined to drive investor interest in gold as a store of value, supporting its recent gains.

Yahoo! Finance's November 5 analysis echoed similar sentiments, with Ambrose Evans-Pritchard suggesting that gold's ongoing rally signaled deeper economic and geopolitical disruptions. The report cited the Western financial systems increasingly relied on inflated debt. "Gold's mystery rally is a forewarning of fiscal ruin and global dystopia," he stated, adding that "gold is rising onwards and upwards with scarcely a pause for breath." This was even as major central banks in countries like Italy and France reported substantial valuation gains on their gold holdings due to these pressures.

Most recently, on November 11, Stockhead reported that the Federal Reserve's recent rate cut had further strengthened gold's rally. This rally began in mid-February and saw gold reaching US$2,744 an ounce by late October. The article noted, "Gold's rally, which started in mid-February, has been underpinned by increased geopolitical risks, the upcoming US election, central bank buying, and slowing ETF sales." The report underscored that these factors collectively contributed to gold's steady upward trajectory. It also reinforces its position as a go-to asset for wealth preservation during times of financial uncertainty.

Sanu's Driving Forces

Sanu Gold's Phase 1 drilling campaign at the Daina project is driven by several promising catalysts, as highlighted in the company's October 2024 investor presentation. A major advantage for Sanu Gold is its strategic partnerships with AngloGold Ashanti and Capital Limited, which provide the company with both financial support and access to experienced insights in West Africa's mining sector. Positioned near AngloGold Ashanti's Siguiri Mine, the Daina project benefits from a shared geological setting with known high-grade mineralization trends, potentially boosting exploration success by aligning with the proven gold-rich structures in the Siguiri Basin.

The Daina project itself presents untapped potential across its five targets, with over 15 kilometers of largely untested gold-bearing structures. The focused drilling campaign aims to confirm high-grade zones already indicated by past drilling and surface sampling results, suggesting a multi-million-ounce discovery could be possible. Sanu Gold's enhanced target identification methods, including recent IP geophysical surveys and extensive rock sampling, offer improved precision for the current drilling phase. These technical advancements position Sanu Gold to capitalize on Daina's mineralization potential, creating a strong foundation for future development.

Ownership and Share Structure

According to the company's latest presentation, the largest share holders include strategic investors Anglo Gold Ashanti at 14 % and Capital at 10%.

Institutional investors include Scotia Global Asset Management, US Global Investors, Lowell Resources Funds Management, and Palos Management, which collectively make up 17% of the shareholders.

Management, founders, and insiders own around 22%, with another 22% being held by high-net-worth individuals. 15% is held by retail investors. 

The market cap for Sanu Gold is CA$17-18million with 238.5 million common shares. The 52-week range for the stock is CA$0.03 and CA$0.15.