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

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

The broker said it is maintaining its rating on the company due to the vote of confidence from Sprott Inc. on the back of continued exploration success.

The following is an extract from the flash note.


Placement & SPP

Taruga announced that it had agreed to place 222m shares @ $0.045 (and 1:1 free attaching options ex. at 0.60 cents exp. 6/17) to raise approximately A$1.0m.

This includes A$500K to Canadian based fund manager Sprott Inc. The Company intends to immediately follow the placement up with a Shareholder Purchase Plan.

Last Quarter also saw the finalisation of a JV with Resolute who can earn a 75% interest via the expenditure of US$3.0m (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 (Cote D’Ivoire).

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


Nangalasso Drilling program delivers

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

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

The drill program targeted four prospects and confirms the 1.7km Au anomaly previously outlined by reconnaissance drilling, soil geochemistry and trenching.

Mineralisation remains open along strike and at depth and further geochemical sampling designed to tighten up the parameters of this mineralised trend are underway.


Kambali Prospect-SLAM Project

At the Kambali Prospect (Mali), a 1,900m, 200m x 80m Aircore drilling program completed last Quarter, designed to target areas of artisanal workings and geochemical anomalism, outlined a 150m x 700m gold zone with significant intersections including 3m @ 5.64 g/t Au. Follow up geochemical sampling is ongoing.


Price Catalyst

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