It said Séguéla's indicated resources increased 7% to 529,000 ounces of gold and inferred by 1,286% to 471,000oz, compared with its maiden March 2019 resource for the project in Côte d'Ivoire.

The update included maiden inferred resources for the Ancien, Agouti and Boulder deposits and Roxgold said four rigs were working on additional extension and infill drilling.

The company had acquired Séguéla from Australian gold heavyweight Newcrest Mining last year, for an initial US$20 million with a further $10 million due if and when it reached production.

"The Séguéla project has become a substantial value accretive project for Roxgold, and we believe that this updated resource underscores the potential for this project to stand alongside our current operations to build the foundation for Roxgold and its future," president and CEO John Dorward said.

"Our next priority will be the completion of the PEA in the second quarter of this year."

Roxgold's Yaramoko mine in Burkina Faso produced a record 142,204 ounces of gold in 2019 and is forecast to produce 120,000-130,000oz this year at an all-in sustaining cost of $930-$990/oz sold.

The company had $42 million in cash at December 31, according to its latest presentation.

Its shares have ranged from C80c-$1.42 over the past year and rose 9.4% yesterday to close at 93c, capitalising it at $345.5 million (US$262 million).