{"id":61200,"date":"2013-01-29T13:43:20","date_gmt":"2013-01-29T02:43:20","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2013\/01\/29\/papillon-reveals-potential-at-fekola\/"},"modified":"2013-01-29T13:43:20","modified_gmt":"2013-01-29T02:43:20","slug":"papillon-reveals-potential-at-fekola","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2013\/01\/29\/papillon-reveals-potential-at-fekola\/","title":{"rendered":"Papillon Reveals Potential At Fekola"},"content":{"rendered":"<p>\n\t<strong>-Significant increase to resource<br \/>\n\t-Quality project excites brokers<br \/>\n\t-Quick route to first gold<\/strong><\/p>\n<p>\n\t<br \/>\n\tBy Eva <span>Brocklehurst<\/span><\/p>\n<p>\n\t<span>Papillon<\/span> Resources ((<span>PIR<\/span>)) is a strong contender in the West African gold play with its flagship <span>Fekola<\/span> gold project in Mali. The company has continued to add value with a significant increase to the <span>Fekola<\/span> resource and, according to Macquarie Bank, a very competent CEO in Mark Connelly.<\/p>\n<p>\n\tAfter reporting a maiden resource in June 2012, <span>Papillon<\/span> has increased its resource calculation by 34% to 55 million <span>tonnes<\/span> at 2.4g\/t gold for 4.21m ounces. But there&#039;s more that excites Macquarie &#8211; 3.5m <span>ozs<\/span> sits within the measured and indicated category, making the conversion to reserve possible with sufficient pre-feasibility work. The deposit remains open at depth and along strike. Macquarie believes the quality of the project, coupled with a clear timeline to delivery of first gold, makes the company a potential high-return stock for those comfortable with the risks associated with a West African explorer.<\/p>\n<p>\n\tDeutsche Bank is equally impressed, noting the updated resource goes a long way to supporting a base case 15 year mine life for <span>4m<\/span> ounces of production. The broker expects the <span>Fekola<\/span> deposit to grow as drilling progresses. A resource update is likely late this year\/early next year. Deutsche notes further clarity on development will be presented in the pre-feasibility study in the June quarter. Deutsche is also encouraged by the increased grade, noting the majority is contained within a single, continuous deposit. Moreover, ongoing drilling is focused purely on resource growth, with recent results clearly showing <span>mineralisation<\/span> continues outside the resource envelope.<\/p>\n<p>\n\tThe downside risks, according to Deutsche are the usual &#8211; project delays, cost blow-out and the gold price. Both Deutsche and Macquarie have a $2.20 price target on <span>FNArena&#039;s<\/span> database with Buy recommendations.<\/p>\n<p>\tIn November 2012,&nbsp;<span>Papillon<\/span> appointed Mark Connelly as the MD &amp; CEO. Mr Connelly has been chief operating officer at Endeavour Mining ((<span>EVR<\/span>)) and prior to that the managing director of <span>Adamus<\/span> Resources ((<span>ADU<\/span>)). Macquarie sees the quality of management that this project has attracted as an indication of its merits.<br \/>\n\t&nbsp;<\/p>\n<p>\n\t<em>Find out why <span>FNArena<\/span> subscribers like the service so much: &quot;<a href=\"http:\/\/www.fnarena.com\/index4.cfm?type=dsp_newsitem&amp;n=29EB960D-9DFF-C00E-7F6B464E5D52E250\">Your Feedback (Thank You)<\/a>&quot; &#8211; Warning this story contains unashamedly positive feedback on the service provided.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Fekola resource upgrade has inspired two brokers recommending the West African gold play as a potential high-return stock.<\/p>\n","protected":false},"author":17,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6],"tags":[22],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/61200"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=61200"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/61200\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=61200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=61200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=61200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}