Parallel Mining (TSXV:PAL) is a Vancouver-based gold exploration company focused on advancing concessions in Burkina Faso, West Africa.Its flagship project is the Garsay property, which had been previously optioned by Newmont Mining (NYSE:NEM) in 2014. The company also recently entered an option agreement to acquire the Sebedougou property – an 82-square-kilometer land package located between Endeavour Mining’s (TSX:EDV) Hounde project and Acacia Mining’s (LON:ACA) South Hounde deposit.
Located in the same gold belt as the producing Inata gold mine, the Garsay project is Parallel Mining’s primary focus for the remainder of 2017. Following up on extensive exploration by Newmont, recent deep drilling on the South Target shows the potential for a high-grade deposit that could be mined by open pit and underground methods. Parallel Mining brings deep management experience to the table in Burkina Faso, along with good relationships with government officials and past geological success in the country. Four members of the current team, Allan Fabbro, Bob Sibthorpe, Nestor Kinane and Matt MacKenzie, all worked for Roxgold (TSXV:ROG), whose Yaramoko project in southwestern Burkina Faso started commercial production in 2016. “We think we’ve got a Yaramoko look-alike,†says Parallel Mining CEO & Director John Anderson.
The company’s growth strategy for investors is to build up early-stage projects through exploration, add shareholder value, and then sell them off. “We think we’ve got the tiger by the tale on Garsay,†Anderson says about Parallel Mining’s main property. Pro-mining Burkina Faso is one of the largest gold-producing countries in Africa. The country was ranked fourth in the continent and 23rd globally in the Current Mineral Potential Index in The Fraser Institute of Canada’s “Survey of Mining Companies 2014.†There are currently seven gold mines in production in Burkina Faso, which has excellent geological potential.
With less than 15 years of modern mineral exploration, Burkina Faso remains under-explored compared to neighboring Ghana and Mali. “Burkina Faso is one of the last places in the world where there’s low-hanging fruit and a mining history,†says Anderson. The geology at Garsay includes basic volcanic basalts, andesites and dacites, basic intrusive (gabbro, dolerite) and acid intrusive rocks (granite, granodiorite porphyry usually with feldspar). Gold mineralization is associated with quartz veins occurring in foliated mafic volcanics.
In 2015 Parallel Mining contracted a Burkina Faso company to conduct a 17-hole round (1,062 meters) of rotary air blast drilling (RAB) designed to test the near-surface mineralized zones identified by Newmont. The RAB drill intercepts ranged from 0.66 grams per tonne to 12.39 g/t, including a 4-meter intercept showing 33.7 g/t. The upshot of the RAB program was that the mineralization found by Newmont extended along the strike zone. It also showed a mineralized structure, WS1, comprised of 100 meters along strike and 200 meters at depth, with the potential for other parallel gold-bearing structures.
“Based on a thorough review of existing exploration data combined with a property visit where check samples were collected and analyzed returning gold results, it is the author’s professional opinion that the Garsay Exploration Permit constitutes a property of merit and should be further investigated to define the economic viability of the gold occurrences identified on them to date,†reads an NI 43-101 report on the Garsay project dated May 13, 2015.
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