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    Burey Gold’s share price spikes on ‘tip of the iceberg’ drilling results
    Burey Gold Limited (ASX: BYR) is an explorer with projects in Guinea and the Democratic Republic of Congo (DRC). The Company’s share price jumped 30 per cent recently on impressive drilling results from the company’s flagship Giro Gold Project in DRC.

    While Burey Gold Limited has been around for a number of years, the explorer’s initial focus was on Guinea, where they had a large portfolio of prospective ground.
    The Company has since reduced that portfolio down to one license - the Balatindi Project in east Guinea - which management believes has the greatest potential.
    The Balatindi Project in east Guinea is the company’s secondary asset, and is considered to be highly prospective for polymetallic mineralisation with IOCGU (iron oxide, copper gold, uranium) potential.
    While scaling down in Guinea the Company took advantage of an opportunity to acquire a highly prospective project, the Giro Gold Project in the DRC, which is now delivering exciting results.
    “The big focus now is in DRC on theGiro Project. Exploration has been put everything on hold in Guinea at the moment because of the Ebola outbreak.
    "When Giro first came on the radar, the early drilling carried out by Panex Resources looked really good which encouraged us to acquire an interest in the project. We have since commenced drilling on the project,” Burey Gold Exploration Manager, Mark Gasson told The Australian Investor. “We haven’t been disappointed.”

    Giro Gold Project
    The Giro Gold Project covers a surface area of 610km2 and lies within the Kilo-Moto Belt in one of the world’s principal greenstone belts, which hosts Randgold Resources’ multi-million ounce Kibali Gold deposits within 30km of Giro.
    Recent drilling results from 8 holes have already returned significant sections including 97m at 2.67g/t Au from surface, including 55m at 3.28g/t Au from 21m. Further significant results also included 6m at 22.68g/t Au including 3m at 44.2g/t Au.
    “We believe 97m at 2.67grams is an exceptional hole and I firmly believe we are going to have many more of these coming,” he said.
    Giro’s proximity to the highly successful Kibali Gold Deposits bodes well for the company, according to Mr Gasson.
    “We considered the Kilo-Moto Belt to be one of the most prospective belts in the DRC. We are 20-30 km from Kibali, the same rock types, similar structures and a similar style of mineralisation. We are encouraged by the very good results.”
    “At Kibali they have built a road all the way to the DRC border with Uganda. So the infrastructure has improved substantially. They spent US$1.7 billion on the infrastructure and developing the mine. That has had a huge impact on the economics of the whole area.
    “Access to Giro is very good. It differs from many of the projects in DRC which are often in the middle of the jungle. The project is mostly covered in savannah grassland which generally allows for easy access when compared to a lot of areas,” he said.
    The recent results were received before drilling was suspended following complications from heavy rainfall. “It has been one of those crazy years where it hasn’t stopped raining until a month ago. The ground was completely waterlogged and as we drilled we eventually had no rotation on the drill rods and had to stop the holes at shallow depths.”
    The drilling contractor has now sourced additional drill casing to enable drilling down to target depths.
    “We had to change our approach and brought in extra casing. We are now casing the holes all the way down to fresh rock and we are reaching target depths.
    “We announced drilling results for another four holes which were drilled to completion. We have ironed out all problems so should be able to complete the 3000 metre program that we started in October last year.”

    Development Strategy
    With Giro mineralised from surface, the Company will initially be a resource suitable for open pit mining.
    “At this early stage we don’t know the size of potential resources on the project. The strategy is to complete the 3000 meters now where we hope to cover the full extent of the main mineralised zone.
    Based on those results, the Company will then look at expanding its drilling program to define the full extent of the zone before commencing infill drilling which would be used to help define a resource.
    “The Giro deposit lieson a major tectonic structure, which trends to the north and traverses both licenses in a north-west orientation. Local Congolese artisanal workings are located all along the structure.
    “At this stage we have touched the tip of the iceberg and are confident of identifying many more deposits along the structure to the northwest which covers more than 20km on both licences. We are confident there will be a lot more news to come.”
    “The priority for the Company is to define a substantial resource on the project. Once we have achieved this we will make a decision on how to take the Company forward which will be in the best interest of the shareholders.

    Share Price Activity
    Burey Gold’s share price jumped 30 per cent following the announced drilling results at Giro, surprising management.
    “We are pleasantly surprised because in the past year if you released good drilling results, there would be very little reaction on the market.
    “It feels as if there has been a change, so yes we are surprised by the reaction. The first day after the announcement there were 13.5 million shares traded, which is excellent. It just shows that, with a good project there will always be interest.”
    The response from the market included some serious resource funds such as Acorn Capital taking a position in the Company.
    “Acorn have been behind Burey for quite a while now and the fact that they took a placement in the company is very positive - to get that quality of investor supporting the company.”

    Cash Position
    As at 30 September 2014, Burey Gold had $1.04 million cash, but on the 26th November last year, the Company announced that it completed the placement of 50 million fully paid ordinary shares at $0.02 each to raise a further $1 million.
    “We have enough funding to finish this current drilling program.”
    “Once we have completed this drilling program we will assess the results to better understand the potential of the project as well as funding requirements before going back to the market.

    Kibali Experience
    Burey’s board has undergone a number of changes in recent times, with Mr Klaus Eckhof appointed Chairman, after stepping away from his previous duties as Managing Director. The Company also welcomed Mark Calderwood to its Board as a Non-Executive Director.
    Mark is the former Managing Director and Chief Executive Officer of West African gold producer Perseus Mining. In his previous capacity as exploration manager for Moto Gold Mines, he was intimately involved with exploration and discovery of the Kibali Gold Mine.
    “Klaus was a founder of Kibali and Mark worked with him in the early days. Mark has a lot of experience in that particular belt and has been very satisfied with what he has seen coming out of the drill results.”
    “Obviously Klaus has had a lot of experience as well, so having a board with them involved and me running the exploration, we have a lot of Congolese experience.
    “This is invaluable, because with the Congo there can be political risk, but geological risk is probably less of a concern,” he said.

    Security in DRC
    With Giro located in the DRC, some investors have concerns about security and potential complications of operating in the region.
    “Although security is often a concern in DRC, we have not experienced any security issues. We have complete support of all the local chiefs and small scale miners. We also employ as many locals as we can to try and build up good relations.
    “As a final comment we will be completing the 3000 metre program of deepening the Panex holes and extending the potential strike length of mineralisation and are confident of coming up with a few more surprises,” Mr Gasson said.
    BYR was recently trading at 0.0400 on the ASX.
    Feb 2015
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