oriel note

Good research out in London below. PIR is following in EQX (another Middlemas stock) footsteps.

Oriel Securities comment
Mining Daily – 14 February 2012
Papillon Resources (PIR.AU, NR) – Stand-out story at Indaba 2012
? We think one of the stand-out stories for Indaba 2012 was Papillon Resources, the ASX-listed company focused on developing the Fekola gold project in Mali
? Recent drill results indicate a deposit which is near surface and metallurgically simple which, while early stage, suggest the potential for an open pit operation which could be processed by a conventional, low cost CIL/gravity circuit
? High grade intercepts including 57m at 10.69g/t gold from 177m depth and 53m at 5.07g/t gold from 155m depth strike over 2km and remain open along strike and at depth
? The project is located in the Southern Keneiba Inlier in West Mali which is host to over 22Moz of gold including Randgold’s Loulo and Gounkoto deposits
? Papillon is underway with an aggressive infill drill programme (40m line and hole spacing) targeting a maiden resource at Fekola by mid 2012. This is expected to be followed up by a scoping study and permitting in H2 2012