Taruga Gold (ASX:TAR) has received a Speculative Buy from...

Taruga Gold (ASX:TAR) has received a Speculative Buy from Perth-broker RM Research.

The broker said it is maintaining its speculative buy rating on Taruga the back of continued exploration success.

The Resolute JV is also a validation of the Company’s core competency, that is the identification of prospective acreage in West Africa.

The following is an extract from the report.


Exploration success in Mali...Resolute JV


Resolute JV-Cote D’Ivoire

Taruga announced (ASX Announcement, 26/2/2015) a farm—in agreement has been reached with Resolute who can earn a 75% interest via the expenditure of US$3.0 million (minimum of US$0.50m prior to withdrawal with no interest earned until US$3.0m is spent) over 4 years on the Nielle, Tiebissou and M’Baihaikro concessions located in Cote D’Ivoire.

Following the earn-in by Resolute, Taruga will be free carried until decision to mine at which point Taruga can contribute or dilute.


Nangalasso Drilling program delivers

The 2nd Quarter 2015 drilling program at Nangalasso (Mali) delivered several promising intersections including 3 metres @ 7.1 g/t Au (within a broader envelope of 21 metres @ 1.25 g/t Au) from a 73 hole aircore program.

The drill program targeted four prospects and confirms the 1.7 kilometre Au anomaly previously outlined by reconnaissance drilling, soil geochemistry and trenching. Mineralisation remains open along strike and at depth.

Gold mineralisation was found to be associated with sulphides, quartz veining and alteration.

The last batch of the results from this program are due shortly and a new program involving further Aircore drilling is likely to be implemented.


Kambali Prospect-SLAM Project

At the Kambali Prospect (Mali), a recently completed 1,900m, 200m x 80m Aircore drilling program, designed to target areas of artisanal workings and geochemical anomalism, was successful in outlining a 150m x 700m gold zone with significant intersections including 3m @ 5.64 g/t Au and 6m @ 1.12 g/t Au.


Price Catalyst

The Resolute JV will certainly accelerate the news flow for the Company from its Cote D’Ivoire projects.

We remain positive that follow up Aircore programs at both Kambali and Nangalasso will continue to extend areas of known gold mineralisation.


Action and Recommendation

RM Research is maintaining its speculative buy rating on Taruga the back of continued exploration success.

The Resolute JV is also a validation of the Company’s core competency, that is the identification of prospective acreage in West Africa.