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Papillon Resources Aims For Maiden Gold Resource At Fekola By Mid 2012

Papillon Resources (ASX: PIR) is targeting a maiden gold JORC Resource by mid-2012 from the Fekola project, with the initial diamond drilling results providing a major boost to the project due to the broad nature of the gold intersections.

The news flow for the company is set to increase in the short term, with the reported results today from just the first 1000 metres of a 15,000 metre diamond campaign, with 3000 metres having been completed so far.

Results from the first holes have returned a number of positive assays, confirming and extending on results from previous reverse circulation drilling.

A number of diamond holes confirmed the gold mineralisation identified by reverse circulation drilling, with results including:

- 86 metres at 6.17 grams per tonne (g/t) gold from 181.2 metres, including 51 metres at 9.17g/t gold;
- 94 metres at 4.63g/t gold from 178.7 metres; and
- 41.9 metres at 3.21g/t gold from 229.2 metres.

In addition, step out reverse circulation drilling at Fekola returned:

- 9 metres at 4.88g/t gold from 54 metres;
- 20 metres at 3.03g/t gold from 41 metres; and
- 17 metres at 2.51g/t gold from 75 metres.

The initial diamond results strengthen Papillon's understanding of the geological structures at Fekola, and underline the project's potential as a strong mineralisation system.

Managing director Alan Campbell told Proactive Investors today that the company plans to ramp up activity at Fekola.

"We have three diamond rigs active on site, and we are looking to increase this number, along with a reverse circulation rig. Papillon will conduct a continuous drilling campaign over the next five or six months," Campbell said.

Fekola strategically located in 22Moz province

Papillon's Fekola Project is located in the same corridor as the Mali West regional gold province, which has more than 22 million ounces of gold within 60 kilometres.

Other projects in the vicinity include Randgold Resource's (LON:RRS) 11.5 million ounce Loulo project and AngloGold Ashanti's (NYSE: AU) 13.1 million ounce Sadiola project.