Notable Gold Zones Indicate Expanding Mineralization in Siguiri Basin

Source: Streetwise Reports 01/22/2025

Sanu Gold Corp. (SANU:CSE; SNGCF:OTCQB; L73:FRA) announced significant gold discoveries at its Daina and Diguifara permits in Guinea, highlighting promising mineralization across key targets. Explore how these findings position the company for further exploration success.

Sanu Gold Corp. (SANU:CSE; SNGCF:OTCQB; L73:FRA) has announced noteworthy results from its exploration programs at the Daina and Diguifara permits in Guinea’s Siguiri Basin. The drilling campaigns, supported by a strategic investment from AngloGold Ashanti, , Capital DI and most recently investments by Montage Gold and the Lundin Group highlight high-grade gold zones and persistent mineralization across key targets.

At the Daina permit, drilling revealed a new high-grade zone at the Daina 2 South target, which spans a 4 km trend. Key intercepts include 51 meters grading 3.11 grams per tonne (g/t) gold from 6 meters, with a standout 5-meter interval grading 20.0 g/t gold in hole DAI-AC-021. This discovery is open along strike and at depth, indicating significant potential for expansion. Previous results from Daina 2 Main Zone, including 21 meters at 4.75 g/t gold, further underline the project’s prospectivity. Follow-up drilling is planned to define the extent of these zones.

Meanwhile, at the Diguifara permit, the inaugural drilling campaign confirmed wide zones of mineralization across three targets, including 34 meters grading 0.55 g/t gold and 40 meters grading 0.40 g/t gold. These results, spanning an 8 km mineralized trend, suggest a robust gold-bearing structure requiring additional step-out drilling, as per the news release.

Sanu Gold is well-capitalized with US$13 million in cash, ensuring the continuation of its exploration activities. President and CEO Martin Pawlitschek emphasized the importance of these discoveries, stating, “The results demonstrate the potential to discover additional high-grade zones at Daina and wide mineralized zones at Diguifara.”

Gold Sector Trends Highlight Bullish Momentum for Mining Companies

In Ahead of the Herd on January 4, Adam Hamilton highlighted the disconnect between gold mining stock prices and prevailing gold prices. He observed that major gold miners achieved record earnings in 2024, with average unit profits surging to US$980 per ounce in the first three quarters, a 29.3% increase from 2020 levels. He stated, “Gold stocks are wildly too low for their massive record earnings, an anomaly that markets never allow to persist for long.” Hamilton suggested that the undervaluation of gold mining stocks presents a contrarian opportunity for revaluation in 2025.

Peter Schiff, writing for Quote the Raven on January 10, analyzed the unusual short-term correlation between gold prices and the U.S. Dollar Index (DXY). He noted that this correlation, while rare, could signal global market stress and suggested that inflationary pressures and geopolitical risks might drive concurrent increases in both assets. Schiff emphasized, “Even with a triumphant U.S. dollar, USD is assured to keep losing value relative to the price of commodities like gold—despite some overlap.”

321 Gold on January 7 underscored gold’s resilience amidst fiscal and geopolitical challenges. Stewart Thomson noted that Trump’s return to the presidency created a favorable scenario for gold due to increased fiscal spending and geopolitical uncertainty. He stated, “Gold just surged from US$1,810 to US$2,790 . . . and did it while the dollar went nowhere against a basket of competitor fiats.”

On January 16, Reuters reported that gold reached its highest level since December 12, 2024, at US$2,716.91 per ounce. The report attributed the price movement to weakening Treasury yields and expectations of a more dovish Federal Reserve policy following soft core inflation data. Han Tan, chief market analyst at Exinity Group, remarked, “Gold should find itself in a supportive environment, so long as market participants can hold on to expectations for Fed rate cuts in 2025.”

Sanu’s Strategic Positioning in a Volatile Global Economy

Sanu Gold is positioned to advance its exploration programs significantly in 2025, as they relay in their investor presentation for the new year. The company plans to mobilize follow-up drilling at both Daina and Diguifara in Q1, focusing on expanding high-grade zones and testing additional targets identified through geophysical surveys and surface sampling. The Daina 2 South discovery, coupled with historical high-grade intercepts at the Daina 2 Main Zone, positions the project as a high-priority exploration target.

At Diguifara, the extensive 8 km trend of mineralization offers multiple opportunities for expansion. The proximity to AngloGold Ashanti’s Siguiri Mine, located just 20 km away, enhances the project’s strategic value, particularly given AngloGold’s ongoing evaluation of satellite deposits in the region. [OWNERSHIP_CHART-10892]

With strong backing from strategic investors, including AngloGold Ashanti and the Lundin family, Sanu Gold has the resources and expertise to pursue systematic exploration across its properties. The company’s focus on defining high-grade zones and leveraging Guinea’s emerging mining infrastructure underscores its potential to deliver value in the competitive West African gold sector.

Ownership and Share Structure

According to the company’s latest presentation, the largest shareholders now include strategic investors Montage at 19.9%, the Lundin Group at 10%, Anglo Gold Ashanti at 6% and Capital at 10%.

Institutional investors include Scotia Global Asset Management, US Global Investors, Lowell Resources Funds Management, and Palos Management, which collectively make up 17% of the shareholders.

Management, founders, and insiders own around 22%, with another 22% being held by high-net-worth individuals. 15% is held by retail investors. 

The market cap for Sanu Gold is CA$75 million with 383.5 million common shares. The 52-week range for the stock is CA$0.03 and CA$0.20.

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Important Disclosures:

1. Sanu Gold Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Sanu Gold Corp.
3. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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( Companies Mentioned: SANU:CSE;SNGCF:OTCQB;L73:FRA, )