Roxgold Announces Positive Results from Definition Program at Zone 55

TORONTO, Aug. 31, 2016 /CNW/ - Roxgold Inc. ("Roxgold" or "the Company") (TSX.V: ROG) is pleased to announce results from its definition drilling program at Zone 55.

Highlights:

• 44.4 grams per tonne ("gpt") gold over 6.3 metres ("m") (4.9 m true width ("TW")) including 362.0 gpt gold over 0.7 m (0.5 m TW) in diamond drill hole YRM-16-DD-412
• 39.2 gpt gold over 6.2 m (5.5 m TW) including 247.0 gpt gold over 0.9 m (0.8 m TW) in diamond drill hole YRM-16-DD-394
• 76.6 gpt gold over 2.8 m (2.4 m TW) including 134.8 gpt gold over 1.6 m (1.4 m TW) in diamond drill hole YRM-16-DD-416
• 33.9 gpt gold over 5.7 m (4.1 m TW) including 91.0 gpt gold over 1.7 m (1.3 m TW) in diamond drill hole YRM-16-DD-418
• 23.5 gpt gold over 5.1 m (4.0 m TW) including 143.0 gpt gold over 0.7 m (0.5 m TW) in diamond drill hole YRM-16-DD-411

"We are pleased that the drill results from the definition program at Zone 55 continue to affirm our belief in the quality and continuity of the deposit," stated John Dorward, President and CEO of Roxgold.  "Strong results within the primary Central Zone have led us to increase our exploration budget for the remainder of 2016 in order to further test the extension of the 55 Zone at depth."

Zone 55 Drilling

Drill results reported today account for approximately 10,800 metres of drilling from a total of 46 diamond drill holes. This drilling program at Zone 55 targeted areas within the current mine envelope with the goal of better defining the continuity of the Zone 55 structure. Results from this program confirm the robustness of the central zone of the deposit, particularly holes YRM-16-DD-383, YRM-16-DD-385, YRM-16-DD-411 and YRM-16-DD-412 where high grades over broad widths have been intersected. Several of these holes targeted areas of limited drilling in the central portion of the 55 Zone and the Company is encouraged by these results.

A number of drill holes targeted the outer western flank of the 55 Zone where mineralization is typically hosted in the mafic volcanic unit and narrower granitic intrusions. The intention of this part of the program was to potentially extend resources and reserves beyond the current periphery of the western zone, however, the majority of results in this specific area were generally low grade over varying widths. 

Hole YRM-16-DD-421 targeted an area approximately 250 metres to the west of the main 55 Zone easterly plunging orebody at a vertical depth of 760 metres below surface. While no significant assays were returned, this hole did intersect a 3.3 metre wide shear zone containing quartz and pyrite. The Company is encouraged by the presence of favourable geology this far to the west at depth and is planning follow up work in the coming months.

All holes drilled into Zone 55 have intersected the shear structure and will be incorporated in an updated resource model to be released in the first quarter of 2017.

For a longitudinal section showing results from this release please refer to the following link (FIGURE 1).

TABLE 1: Summary of 55 Zone Results from Expansion and Advanced Definition Program

*results are reported uncapped.

Upcoming Exploration

At Zone 55, a drilling program is scheduled to begin in mid-September with two drill rigs further testing the extension of Zone 55 at depth with approximately 15,000 meters of drilling planned.

A second drilling program will also be undertaken at Bagassi South to expand on the resource at the QV' target with approximately 4,000 metres of drilling planned.

In addition to the near-mine drilling program, regional exploration at Yaramoko will also start again in September once the rainy season has subsided. A soil geochemistry program has been planned in the southern portion of the concession over a prospective granitic intrusion along the Yaramoko shear.  The targeted area is approximately 6 km² and the sampling will be conducted along 100 m spaced lines.

USD$2.5 million has been budgeted for the remainder of the 2016 exploration program.

Qualified Persons

Yan Bourassa, P.Geo, Vice President of Geology for Roxgold Inc., is a Qualified Person within the meaning of National Instrument 43-101, having verified and approved the technical data disclosed in this press release. This includes the sampling, analytical and test data underlying the information.

Quality Assurance/ Quality Control

The holes were drilled with NQ2 sized diamond drill bits for drill holes reported in this press release. Company personnel are located at the drill site. Employees of Roxgold conducted all logging and sampling. The core was logged, marked up for sampling using standard lengths of two metres outside of the "zone" and adjusted to lithological contacts up to one metre within the "zone". Samples are then cut into equal halves using a diamond saw. One half of the core was left in the original core box and stored in a secure location at the Roxgold camp within the Yaramoko area. The other half was sampled, catalogued and placed into sealed bags and securely stored at the site until it was shipped to Activation Laboratories located in Ouagadougou (the "Lab"). The core was dried and crushed by the Lab and a 150 gram pulp was prepared from the coarse crushed material. The Lab then conducted routine gold analysis using a 50 gram charge and fire assay with an atomic absorption finish. Samples returning over 5.0 gpt were also analysed by gravimetric analysis. Quality control procedures included the systematic insertion of blanks, duplicates and sample standards into the sample stream. In addition, the Lab inserted its own quality control samples.

About Roxgold

Roxgold is a gold mining company with its key asset, the high grade Yaramoko Gold Mine, located in the Houndé greenstone region of Burkina Faso, West Africa. The Company expects to reach commercial production in Q3 2016. Roxgold trades on the TSX Venture Exchange under the symbol ROG and as part of the Nasdaq International Designation program with the symbol OTC: ROGFF.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release." This news release contains forward-looking information. Forward looking information contained in this new release includes, but is not limited to, statements with respect to: (i) the estimation of measured, inferred and indicated mineral resources and probable mineral reserves including, without limitation, statements with respect to the potential establishment of new mineral resources and the expansion potential of existing mineral resources/reserves; and (ii) the success of exploration and development activities; and (iii) the technical report entitled "Technical Report for the Yaramoko Gold Project, Burkina Faso" dated June 4, 2014 (the "Feasibility Study"). These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. In certain cases, forward-looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and mineral reserves (and potential establishment and increases in respect thereof), the realization of resource estimates and reserve estimates, gold metal prices, the timing and amount of future exploration and development expenditures, and materials to continue to explore and develop the Yaramoko project in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration, risks relating to variations in mineral resources and mineral reserves, grade or recovery rates resulting from current exploration and development activities (including risks that new mineral resources may not be established, or the anticipated expansion potential of existing mineral resources/reserves may not be realized), risks relating to changes in gold prices and the worldwide demand for and supply of gold, risks related to increased competition in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources and mineral reserves, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, capitalization and liquidity risks, risks related to disputes concerning property titles and interest, and environmental risks. Please refer to the Company's Annual Information Form dated April 10, 2015 filed on SEDAR at www.sedar.com for political, environmental or other risks that could materially affect the development of mineral resources and mineral reserves. This list is not exhaustive of the factors that may affect any of the Company's forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking information. The Company does not undertake to update any forward-looking information that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

SOURCE Roxgold Inc.