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Higher-grade satellite potential as Golden Rim Resources surges on drilling

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Higher-grade satellite potential as Golden Rim Resources surges on drilling

Golden Rim Resources Ltd. has hit 10 meters at 4.1 g/t gold at the Red Hill prospect in its Kouri project in Burkina Faso which managing director Craig Mackay said could lead to a second, satellite resource bigger than the first, though broker Hartleys says it is very early days yet.

The junior's ASX stock rose 11.76% after announcing Jan. 15 that the result from hole NKRC054 was obtained 40 meters below a previous intercept of 11 meters at 3.4 g/t gold at hole NKRC047.

The company also achieved closely-spaced gold intercepts of 2 meters at 2.6 g/t, 3 meters at 2.1 g/t and 9 meters at 1 g/t located 100 meters along strike from the gold mineralization intersected in holes NKRC054 and NKRC047.

Mackay told S&P Global Market Intelligence that the continuity of the mineralization and grades particularly impressed the junior, particularly given it is the only second area into which Golden Rim has put a concentration of holes.

He described the results as "pretty significant ... because we have 1.4 million ounces 4.5 kilometers away, and this looks like a second, satellite resource, subject to more drilling, and if we're getting 4 g/t intercepts we could actually end up with something higher grade than the other resource."

Mackay said the company is due to shortly release more from a batch of drill results it is waiting on from work done pre-Christmas 2018, and is already contemplating more drilling because "we're finding more material and possibly areas where we weren't expecting such good results."

The next lot of results to be released will come from drilling up around the resource area.

"The cover at Red Hill is only about 2 or 3 meters, which is the norm across most of the license area, but 4.5 kilometers away where we have the main resource there's actually a recent river channel which is about 10 meters deep or more where we've just dropped some holes, and I think it will be interesting to see the results we get out of that," Mackay said.

"I think it will show a major extension of the resource to the west."

With the gold mineralization at Red Hill lying under shallow cover, trenching will start shortly to confirm its orientation prior to further drilling.

Hartleys Associate Analyst Michael Scantlebury, who covers the stock, said that while it's "a bit early to be calling it a game changer ... it definitely looks encouraging."

"Hopefully they can just keep on extending it and get a higher-grade satellite with something sitting over 2 g/t that could feed into a scoping study with the mineral resource at Kouri," he told S&P Global Market Intelligence. "That would definitely help the economics quite a lot."

He added that while Golden Rim's early heap leach test work suits a lower-grade ore body, "if they can get a higher grade feed it could change the approach they take."