update needed, page-54

Papillon Resources string of gold hits extends Fekola strike past 1km in Mali
Tuesday, August 16, 2011 by John Phillips (Proactiveinvestors)- PIR Website

Papillon Resources (ASX: PIR) is unlocking the vast potential of the Fekola Gold Discovery in Mali, and has now extended the strike past one kilometre.

Better still, the gold hits to date could be just the tip of the iceberg, with another 8,000 metres of reverse circulation results pending which has the potential to extend the strike to 1.6 kilometres through the discovery area.

Highlights from step out traverses and infill drilling south of the Fekola discovery where mineralisation remains open at depth and along strike include:

- 17 metres at 12.42 grams per tonne (g/t) gold from 4 metres
- 12 metres at 2.48g/t gold from 34 metres; and
- 12 metres at 2.30g/t gold from 112 metres.

Broad highlights from the northern three traverses include:

- 18 metres at 6.84g/t gold from 142 metres;
- 19 metres at 3.71g/t gold from 84 metres; and
- 37 metres at 2.04g/t gold from 71 metres.

Whilst the Fekola discovery remains at an early stage there are some consistent features emerging, particularly the association between gold and widespread silicification and pyrite alteration in a host sequence comprising quartzite, fine-grained sedimentary rocks and mafic intrusive rocks.

Papillon said that the alteration style appears similar to that at the FNE mineralised centre and continues to lie within a north-south trending structural feature (the ?Fekola Corridor?) reflected in IP data.

The impact though from the results to date point to a substantial exploration upside at Fekola - and elsewhere along the structural trend.

Alan Campbell, managing director, told Proactive Investors today that after the wet season the company will commence an aggressive exploration strategy with five rigs on site, including diamond.

Campbell added that the future exploration focus will continue to be infill and step out at the Fekola prospect and the Fekola Corridor - to determine the near surface resource potential along the zone.

Adding a news flow boost to Papillon, around 30,000 metres of drilling results at other projects within the country are still pending - providing the potential for an upside in exploration success.

With hits such as 17m at 12.42g/t gold from 4m at Fekola, the pending assays for another 8,000m of drilling are highly anticipated. Add to the mix 30,000m of drilling results at other projects in coming months - the news flow for Papillon is hotting up. (END)

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Jayneen - agree 100% with your comments. My rough calcs show potential of +2Mozs at Fekola PLUS the strong possibility of repeating systems both along strike and at depth.

Time will tell
MG