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Xtra Gold Resources Corp

Xtra-Gold (XTG, TSX) Executes, MORE "Tier 1" Intercepts!

DT Cook / December 21, 2020
  • Stocks / GOLD

James "The Golden Boy" Longshore with a quick run down on Xtra's project in Ghana.

  • 10.1 g/t Au over 12 m, within a broader 30-m intercept grading 6.2 g/t
  • 2.5 g/t Au over 75 m
  • **39.1** g/t Au over 3 m, including **114** g/t over 1 m


James Longshore, President and CEO remarked: "The ongoing Double 19 expansion drilling continues to demonstrate the resource growth potential along the auriferous fold structure. Most of these new reported drill intercepts on the newly defined NW Limb Zone are within approximately 100 m of surface which bodes well for a possible open pit mining design. The intersection of high-grade Gold also greatly increases the deposit's exploration potential at depth along the down-plunge extension of the Double 19 fold structure.


Drilling efforts at the Gatehouse Zone also produced encouraging results with follow up drilling on the newly identified southern Gold shoot yielding multiple significant intercepts and establishing the continuity of the Gold mineralization both along strike and at depth.


We are progressively more convinced of the substantial Zone 2 - Zone 3 exploration upside with the potential to significantly increase the Kibi Project Gold resource."


Let’s take a look... Kibi Belt


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We're talking 2+ Million Ounces

Granitoid-hosted Gold systems in Ghana are known for being very large and very economical. We're talking 2+ million ounces and mining costs of less than $1,000. Mining costs are actually less than $800 per ounce in some cases.


Today's results demonstrate Xtra's Kibi Project is well on its way toward becoming a 1+ million ounce deposit grading 2+ grams per ton. Sometime next year, possibly in the 1st half of 2021, we'll get confirmation of that when Xtra publishes an updated resource estimate.


All of this material starts at or near-surface, too, so open-pit - very economical.


We also know the Gold didn't fall from the sky. It was pumped toward the surface from a plumbing system down below. Therefore Xtra or whoever acquires the Kibi Project will continue finding Gold at depth. Not unlike with about every other mine in Ghana.


Bottom Line: Longshore, Xtra, and the team in Ghana (140 people) continue to execute. Today's "Tier 1" results build upon and improve upon results published in October, which were highlighted by 2.4 grams over 61 m. Kibi hosts a million ounces of Gold (we will get an official announcement on that sometime next year), but that's literally just "scratching the surface". Millions more will be found with enough time and drilling. I feel comfortable and confident making such a statement because Kibi is like a cousin to Ghana's Ashanti belt, where 150 million ounces have been discovered to date. Only Kibi has been vastly underexplored relative to Ashanti, where 20+ large mines are located.


Let’s take a look... How Big

Very Satisfied with Results.

James Longshore, President and CEO remarked,"We are very satisfied with the results of this initial phase of resource expansion drilling at the Double 19 deposit. These results have confirmed the down plunge continuity of the central fold hinge Gold shoot, outside the scope of the current Inferred mineral resource, as well as impactfully increased the resource expansion potential along the limbs of the fold structure. Considerable insight has been gained into the litho-structural controls of the Zone 2 - Zone 3 Gold mineralization over the last few years, with the evolving geological model providing enhanced drill targeting to further maximize the Kibi Gold Project's economic potential."

James Longshore - Xtra Gold Resources Corp

p.s. China's Shandong Mining and Russia's Nordgold have been in a bidding war much of this year for Cardinal Resources (CDV, TSX). The all-cash purchase price was to be approximately $360 million, or $1.05 per share. Then last minute, just as it looked like a done deal, a Ghanaian company upped the offer! Who knows when and for what price Cardinal will finally be acquired, but we do know 3 companies desperately want to own their Gold assets in Ghana.


Only 1 will be successful, leaving 2 unhappy would-be acquirers.

Xtra has the next best deposit in Ghana, with huge exploration upside. Can you see where this is heading?


XTG, with a market cap of just $50 million, closed ups 12 cents today at $1.30.


Ask James, CEO for Xtra-Gold, the hard questions...

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Gatehouse doubles the size of the area to be drilled because it's got the same granitoid rocks.

Xtra's structural geologist is already working to define targets and determine best how to tie Gatehouse with Zones 2 + 3 as economically as possible.


In Summary: Granitoid-hosted Gold deposits have some common characteristics - they're very large, very consistent, and very economical. Precisely the type of mine majors need and want to own. Xtra is in the process of delineating a series of granitoid deposits between Zone 2 and Zone 3 (possibly 1 super pit if it ties together). Gatehouse doubles the size potential.

Almost no dilution for nearly a decade.

XTG is literally a 1 in 1,000 exploration stock because they've never diluted the share structure since going public a decade ago (hard to believe, isn't it). The company is well capitalized with approximately $10 million working capital. A full-time workforce of 140 people and 2 Xtra-owned drill rigs means they can get way more work done and move far faster than most.


Beautiful share structure - just 47 million shares outstanding and fully financed for the next 2 years to execute its business plan.


Finally, the... Bullish Chart


Co-Founder and Chief Executive Officer of Xtra-Gold and Managing Director of Ghanaian subsidiaries, Xtra-Gold Mining Limited and Xtra-Gold Exploration Limited since 2009. Mr. Longshore oversees the mining project and exploration activities of the Company. Mr. Longshore has more than 25 years business investment experience in resource companies.

James Longshore
  • B.A. Economics, Bowdoin College, Maine
Xtra Gold Resources Corp.

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