Recent exploration at the Okalla West prospect in Cambodia has returned encouraging gold results. The Okalla West surface gold zone is within Angkor Gold Corp’s 150sqkm Banlung exploration licence where work is carried out under an agreement with Blue River Resources.
New auger assay results in the Okalla West gold zone shows that gold mineralisation is located in a 2 metre thick lateritic soil layer which is covered by soil organics from 0.1 to 0.5 metres thick.
Of the 235 samples analysed from within the laterite soil layer, the highest grade returned was 2.45 g/t gold.
A Very Low Frequency Electro-magnetic (VLF-EM) survey was conducted in December over a 1.1sqkm area within the previously discovered 4sqkm surface gold anomaly. Interpretation of the VLF-EM survey suggests two structural fault systems with the possibility of containing multiple quartz veins.
Four assayed grab samples from field mapping show evidence of a quartz vein system in the surrounding area outside of the 1.1sqkm covered by the VLF-EM survey. The assays of these four grab samples returned results of 0.52 g/t, 0.09 g/t, 3.09 g/t and 1.83 g/t.
Based on the field observation and assay results, much of the gold appears to be a secondary deposit formed by groundwater leaching from quartz vein systems in the underlying bed rock then re-precipitating the gold into the laterite. Some of the gold is also hosted by locally derived bedrock clasts.
This will be further examined during the upcoming trenching program, which is planned to begin in the next month. This is expected to consist of linear trenches and/or pits over 5 lines totalling approximately 7200 cubic metres. Total volume will depend upon soil conditions and sampling procedure as determined during the program.
Blue River has the right to participate initially in up to a 50% interest of the Banlung exploration licence from Angkor Gold after the completion of a total investment of US$3.5 million in exploration expenditures over a 4-year period. Blue River may then exercise its option on an additional 20% interest of the Banlung tenement through the commission and completion of a bankable feasibility study on the property or portion thereof.