Soil geochemistry suggested that the 1km long, 200m wide anomalous zone would be a gold only target which initial drilling has confirmed.

The width of the zone and the interpreted strike length suggests the potential to host a significant sulphide gold zone.

The gold mineralisation identified is located in two zones, one of which commences from surface and the other from 21m.The gold is associated with narrow pyrite veins within a strongly foliated breccia zone. Single metre samples have grades up to 2.46g/t Au within broader zones.

Geopacific Managing Director Ron Heeks said: "This is the first time we have drilled a gold-only geochemical anomaly at Kou Sa and to get immediate results so close to surface is very encouraging. We were confident from mapping and surface sampling that the area had the potential to produce gold mineralisation and this is now confirmed.

"The shear hosted nature of the mineralisation has the potential to be deep and long. We look forward to further drilling producing more positive results in the near future. The similarities in geology and geochemistry between the Prospect 170 and 190 gold anomalies are encouraging and we await results from initial testing at Prospect 170."

These results from the gold zone follow on from the significant results achieved from initial drilling of the nearby copper and silver zone that were released on 10 June 2015. Together these two zones form Prospect 190, with the copper and silver zone located 600m metres to the south of the gold zone.

Geological mapping of the Prospect 190 area identified a north-east trending, low lying ridge that was silicified, clay altered and possibly associated with a shear zone. The ridge corresponded with a gold in soil geochemical anomaly that had a similar alignment. Immediate results confirming the presence of discrete gold mineralisation is very encouraging given the broad nature of the geochemical anomaly. Targeting of the surface expression of the alteration zone was also assisted by potassium radiometrics which highlighted the area as anomalous.

The nature and orientation of the gold mineralisation at Prospect 190 is significantly different from most other styles of mineralisation encountered at Kou Sa all of which are associated with copper and silver and typically orientated east-west.

The north-east trend and geochemical signature at Prospect 190 is similar to that at Prospect 170 which is potentially also a gold-only system. Both gold anomalies are also similar in that they are located just north of IP chargeability highs, some of which have already produced copper and silver mineralisation.

Further diamond drilling to define the extent of the mineralisation at Prospect 190 and initial testing of the Prospect 170 area has commenced. Results will be announced over the coming weeks.