Proactive Investor's  Instablog

Compass Gold Corporation (TSXV: CVB) is starting to unlock the potential of the Yanfolila permit, which is hosted within the "Bale Gold province" in Southern Mali, after additional gold discoveries at the Solona target.

The outcome from just two additional deep-inclined diamond drill holes is the confirmation of gold mineralisation continuing at depth.

The latest broad highlights include 52 metres at 1.30 grams per tonne (g/t) gold from 21 metres, which also hosts the higher grade intersection of 10.9 metres at 3.79g/t gold.

Better still - the exploration news flow is set to ramp up for Compass Gold, considering there are additional assays from another 23 holes pending.

Dr. Madani Diallo, the leader of Compass Gold's exploration program, said: "The analysis of these two additional drill holes provides us with further support that we are justified in our optimism regarding the potential of the Solona target.

"We are eagerly awaiting further exploration results that will provide us with the data we need to plan our more extensive drilling program scheduled to commence in the third-quarter 2012."

The diamond drilling program at Yanfolila was recently extended to 5000 metres due to successfully identifying gold, with the additional 2000 metres providing Compass Gold with the opportunity to test the northern and southern extensions of the known Solona target.

Mali - a compelling country to explore for gold

Investors must remember that Mali is still a compelling country to explore for gold, with Mali currently Africa's third largest gold producer.

Add to this Dr Diallo - who has been directly responsible for discoveries of over 30 million gold ounces in Mali - highlighting Compass Gold have the ingredients in place for success.

Dr Diallo's gold discoveries were responsible for 50% of the entire Mali Gold production in 2010 of 1.2 million ounces, and he had direct leadership over the discoveries of Resolute Mining (ASX: RSG) 7.9 million gold ounce Syama mine, the Randgold Resources (NASDAQ:GOLD) 8.5 million ounce Morila mine, the Anglogold-Ashanti (NYSE:AU) 13.5 million gold ounce Sadiola mine and the IAMGOLD Corporation (NYSE:IAG) 5.3 million gold ounce Essakane mine.

Dr Diallo is also a major shareholder in Compass Gold with a stake of 15.8%. Of interest, Australian and Asian investors account for 50% of the Compass Gold register.

Not lost on astute investors, Larry Phillips recently joined the board, with Phillips a founder of IAMGOLD Corporation (TSE: IMG) (which has a market cap. of over $4 billion), and helped to guide IAMGOLD from a West African exploration junior to an annual million-ounce producer.

Phillips was a co-founder of IAMGOLD in 1990 and retired from the company in June 2011 as its Executive Vice-President, Corporate Affairs. During his more than two decades with the company, he was involved in all of its international investments, joint ventures, and government relationships.

He assisted IAMGOLD in establishing a strong reputation for corporate governance and social responsibility, and was also a Director of SEMOS, a joint venture company of IAMGOLD that was responsible for the development of the Sadiola gold mine in Mali.

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