Osino Resources has reported the best gold drill intercept in the company’s history at its Ondundu project in Namibia.
Hole ONRC23-017 returned 109 metres grading 2.3 grams gold per tonne from 68 metres depth, including higher-grade intervals of 5 metres at 7.81 grams gold from 50 metres depth, and 3 metres at 7.5 grams from 15 metres downhole.
The latest results yield a weighted average grade of 1.57 grams gold per tonne over an average width of 44.2 metres, which compares well with the project’s initial resource, released last October.
Odundu hosts 26 million tonnes grading 1.13 grams gold per tonne for 900,000 oz. of metal. Osino completed the acquisition of Ondundu from B2Gold on July 21, 2022.
The highlight intercept was part of a 3,148-metre, 15-hole reverse-circulation infill and scissor drilling program at the project’s Razorback target. The results confirmed and added new material to a deposit last explored by B2Gold (TSX: BTO; NYSE: BTG) in 2016.
The two scissor holes in the program were drilled in the opposite direction to check the frequency and grade of quartz veins perpendicular to the main mineralization, intersecting mineralization east of the current resource. Hole OND022-226 returned 16 metres at 2.66 grams gold per tonne from 73 metres depth, and hole OND022-225 hit a new zone of low-grade mineralization within the resource pit shell previously classified as waste.
In a note to clients, Echelon Capital Markets mining analyst Ryan Walker said the results point to potential to expansion the resource and improve the grade.
“We would add that despite the low average grade seen from the two scissor holes, further drilling of the new zone should yield both additional gold ounces and improve resource grading through the conversion of material previously labelled as unmineralized,” Walker wrote.
Ondundu is Namibia’s oldest known gold deposit, with a history of mining and exploration by various operators dating back to German colonial times from 1917.
According to Osino, the deposit is known for its coarse and nuggety gold mineralization, which gives rise to narrow high-grade gold intersections which are complex to model but represent potential upside.
Metallurgical test work completed in 2022 confirms the deposit is amenable to gravity concentration. The project has potential to produce a low volume, high-grade gravity concentrate that could be processed at Osino’s prefeasibility stage Twin Hills gold development project, 130 km by road to the southeast.
Walker expects more news soon from the company’s remaining seven reverse-circulation holes that have yet to be reported by month-end, and news from further discovery drilling to the east once planned resource update drilling begins.
Despite the positive results, Osino shares did not react. They last traded at $1.14, having tested highs and lows of 52¢ and $1.34 over the past 12 months. The company has a market capitalization of C$178.5 million.
