Pursuant to an announcement 6 August 2018, Apollo entered into a binding Heads of Agreement with Novo Litio Ltd, now renamed Exore Resources Limited (‘Exore’ – ASX: ERX), to sell an 80% interest in its Boundiali and Korhogo gold permits. Apollo shareholders will retain significant exposure to the stepped-up exploration activities on the permit though a 20% free-carried interest to ‘Decision to Mine’ in the permit, as well as a 19.4% equity position in Exore. Exore holds a post-transaction cash position balance of over $15m, and has committed to a $5m exploration campaign spanning the Korhogo/Boundiali permits over the coming two years. Apollo retains a board position in Aspire Nord CI, the Ivorian company holding the permits.
The Boundiali permit is in northern Cote d’Ivoire and lies in a strong setting on a structural zone hosting several gold prospects on adjoining Randgold Resources Ltd permits. The geological sequence is considered equivalent to the Syama belt, which hosts the world-class Syama gold mine of Resolute Resources, located 100km to the north.
Prior Work and Information
Significant soil anomalism trends in a SE direction from Antoinette, overlying a medium-grained granodiorite intrusion, and paralleling its NE margin. Aircore drilling during 2016 and 2017 identified granodiorite-hosted stockwork mineralisation below soil anomalism, with results in the oxide profile including 24m @ 1.28g/t Au, 16m @ 1.36g/t Au, 8m @ 2.42g/t Au EOH, 16m @ 1.0g/t Au, 11m @ 1.11g/t Au EOH, and 8m @ 1.58g/t Au. Evidence suggests that bedrock gold structures trend NW-SE, including the mapping of a new line of artisanal operations with this orientation at Granodiorite SE.
Soil sampling late 2017 outlined a significant new gold-in-soil anomaly that is comparable in scale to Antoinette. At a >25ppb Au threshold the new soil anomaly has dimensions of 4km x 1km, bisected by a NE trending drainage channel. Recent step-out sampling to the south opened a >1km long high-tenor section of the anomaly that includes multiple >100ppb Au results including 744ppb Au, 632ppb Au, 486ppb Au & 358ppb Au. Regionally the anomaly lies on a corridor of magnetic features/structure that trends toward the 4.3moz Tongon gold mine (Randgold Resources Ltd), 60km ENE.
The anomaly is open toward the next reconnaissance traverse located 2.4km to the south.
Permit Location Map Cote d’Ivoire
All 2017 Soil lines and emerging soil anomalism on regional magnetic imagery
In the northern part of the permit an elongate >2km anomaly contains spot results to 162ppb Au. This anomaly is coincident with the regional NE-SW corridor that extends through Antoinette and southwards toward Randgold Resources’ Kassere prospects. Kassere forms part of the emerging Fonondara trend on Randgold’s Boundiali permit.
Reconnaissance sampling at 2.4km line spacing in the southern part of the permit returned widespread >25ppb Au anomalism and spot results including 354 and 189ppb Au. Infill sampling is required to put these early results into context.
Alteration in the host sandstone unit consists of silica, carbonate and sericite, accompanied by fine silica veinlets and disseminated sulphides. Alteration is interpreted to be near-vertical and has been logged over zones >50m downhole.
Higher-grade gold mineralisation appears related to zones of quartz veining, particularly around the margins and within black shale units (see Appendix 1). Shale horizons appear to be sub-vertical, but the orientation of veining is unknown. Broader low-grade and anomalous gold results are related to zones of increased disseminated sulphides (to approximately 5% of rock total) within the alteration system.
Drill Targets at Antoinette anomaly. Plan view of ground magnetic image showing all aircore drilling traverses and location of key prospects. All collars coloured for peak down-hole Au*. 2017 Soil sample locations shown as bold cross symbols, untested target areas in yellow
Granodiorite SE (as described above)
At Trench Zone two initial phases of RC drilling were completed during 2016. Existing oxide intercepts sit within a 40-60m weathered profile overlying a steeply dipping NE-SW oriented main structure. Mineralisation has been intersected over 600m of strike, with results including 17m @ 22.52g/t Au in BDRC0011, 6m @ 10.56g/t Au in BDRC016, 14m @ 11.24g/t Au in BDRC006 and 11m @ 9.07g/t Au in BDRC005.
Additional mineralisation also lies on a sub-parallel structure to the east of the main zone. Oxide intercepts on this partly-drilled surface include 11m @ 6.69g/t Au in BDRC012, 13m @ 2.74g//t Au and 9m @ 2.44g/t Au in BDRC013, 5m @ 7.15g/t Au in BDRC014, and 10m @ 2.86g/t Au in BDRC028. The Trench Zone discovery is described in more detail in Company releases dated 12th and 18th August 2016, and 30th November 2016.
The Masseguere prospect lies ~400m to the NW of Trench Zone and is parallel to that structure (Figure 11). Shallow results here include 17m @ 1.22g/t Au, supported by 9m @ 3.17g/t Au EOH, 8m @ 1.23g/t Au and 1m @ 6.62g/t EOH in adjoining lines. This prospect is ready for RC drill testing.
Reconnaissance traverses in this area approximately 4km along strike to the SW of Trench Zone (Figure 11) include a high-grade composite intercept of 4m @ 13.68g/t Au in deeply weathered granite adjoining volcano-sedimentary rocks. The nearest adjoining traverse is 400m to the NE, and there is no drilling to the SW.