PDI: Imminent drill results to grow an economic deposit

PDI’s NE Bankan project has hit exceptionalgold grades throughout the prospect and is undertaking an extensive drillprogramme to further define and extend the resource, with results dueimminently. The ongoing programme comprises of (1) diamond drill (DD) holes,(2) reverse circulation (RC) drilling, and (3) further auger drilling. As theseresults are released, I am confident PDI will rerate upward toward ~15c areasover the coming weeks.

(1) Diamond Drilling

The DD at NE Bankan is crucial as it will drilldeep enough to hit a layer of fresh rock (untested by current drilling there)below the already significant mineralisation shown in the auger and RC holes, whichare shallower drilling methods. The map below shows the exceptional RC drillresults including highlights of 46m @6.58g/t and 42m @ 2.92g/t, bothof which ended in mineralisation.In fact, the initial 24-hole RC drill programme had 9/24 holes end in mineralisation (yellow stars on mapbelow). Many of these holes also hit goldfrom the surface, suggesting a large gold resource which will be verycheap to mine. The initial 5 DD holes will test for gold below key RC holeswhich ended in mineralisation (PDI has confirmed 3/5 of first holes will be KKOAC001,KKOAC008, KKOAC010).

Interestingly, PDI has another prospectsouth-west of NE Bankan called Bankan Creek. Only one hole of the completed RCdrilling at Bankan Creek was deep enough to reach the layer of fresh rock, andit hit gold of >1g/t. TheMD has stated the geology of this basin is more consistent than he has seenanywhere else in his career, so it is likely the fresh rock mineralisation fromBankan Creek will continue in the NE Bankan prospect. Assays from the first 5 DDholes are due at any time and I expect those to be announced with (or aroundthe same time as) further reverse circulation (RC) drilling (see (2) below). Giventhe scale of the prospect (currently 1.3km x ~300m), even extending themineralization a few metres below the current RC holes will significantlyincrease the gold contained in the resource.

(2) RC drilling

Further RC drilling seeks to define depthextensions on previous auger holes. PDI has been drilling auger holes at NEBankan to 20m depths, a quick and cheap method to help inform where to carryout more expensive drilling (RC and DD). The next RC drill results are duewithin 1-2 weeks, which will build on strong grades in auger holes and informwhere to target further DD holes. The below map shows the most recent auger holes(blue, Saman Permit at the top) which extended the strike (length) of theprospect, however the more significantd results are from the previous set of augerdrilling (orange boxes, Kaninko Permit). Current RC drilling will test predominantlythese orange boxes, to then inform further DD holes. I expect the RC will showsignificant mineralisation below the highly promising auger hits.

(3) Auger drilling

PDI have secured a further permit to the northof the NE Bankan project and are carrying out auger drilling both in thatpermit and further south of the current prospect. The large-scale augerprogramme has the potential to extend the strikeof the project to 3.8km (see below image). There has been extensiveartisanal mining (primitive, manual mining techniques with limited equipment)throughout the planned drill area which suggest shallow mineralisation similarto the Kaninko Permit and will be tested by the auger holes.

In summary, PDI’s exceptional drill results todate have shown NE Bankan is an extraordinary prospect. Proximal to AngloGold’sworld-class Siguiri mine, PDI’s comprehensive drill programme outlined abovewill grow the resource to an impressive scale in what is undoubtedly a highlyprospective area. Aside from these projects, PDI holds numerous other prospectsincluding a JV with Resolute Mining. However, clearly the focus is currently allabout NE Bankan, and the upcoming drill results will in my opinion see PDI finda new base in the 12-15c area at an absolute minimum over the next 1-2 weeks.

Not financial advice, DYOR.