Search Results for "Africa"

Nexus Gold Signs Definitive Agreement to Acquire Bouboulou Concession, Burkina Faso, West Africa

Nexus Gold (TSXV:NXS) announced it has entered into a definitive agreement with Bureau D’Etudes des Geosciences et de L’Environnement pursuant to which Nexus will acquire the right to earn up to a 100-per-cent interest in the Bouboulou exploration permit located in Burkina Faso, West Africa.

Nexus will have an option to acquire up to 75-per-cent interest in the property in consideration for cash payments of $500,000 (U.S.) and the issuance of 900,000 common shares of Nexus over a period of three years. Following the acquisition of a 75-per-cent interest in the property, Nexus will have the option to acquire the remaining 25-per-cent interest in the property through a cash payment of $1-million (U.S.) with a 1-per-cent net smelter return royalty remaining with the optionor.

Connect with Nexus Gold (TSXV:NXS) to receive an Investor Presentation.


B2Gold 2016 Exploration Update: West Africa

VANCOUVER, BRITISH COLUMBIA–(Marketwired – June 29, 2016) - B2Gold Corp. (TSX:BTO)(NYSE MKT:BTG)(NAMIBIAN:B2G) (“B2Gold” or the “Company”) is pleased to announce an exploration update for its Fekola and Kiaka projects in West Africa (Mali and Burkina Faso, respectively). All dollar figures are in United States dollars unless otherwise indicated.

Highlights of the new drill results include 15.50 metres at 8.49 g/t (grams per tonne) gold from a diamond drill hole north of the Fekola deposit; 26 metres at 5.44 g/t gold from reverse circulation drilling in a new zone of saprolite-hosted gold mineralization in the Fekola area; and 16 metres at 4.16 g/t gold, including 6 metres at 9.90 g/t gold, intersected in a new target area during the reconnaissance aircore drilling program in the Kiaka area.

The significance of the highlighted (outlined below) and previous positive drill results (released in January this year) at the Fekola project is that they demonstrate the potential for the area to host additional zones of open-pittable gold mineralization similar to the Fekola deposit, as well as significant zones of saprolite-hosted gold mineralization. In addition, deeper drilling below the Fekola deposit returned positive results that indicate the potential for underground mining in the future. Based on the exploration potential and success to date, the Company is constructing the Fekola mine with a +25% design factor. This means that the throughput of ore at Fekola could reach up to 5 million tonnes per year in the initial years of production, beyond the optimized feasibility study’s(1) estimated throughput of 4 million tonnes per year. This increase may only require approximately $15 million to $20 million of additional capital expenditure and could potentially increase annual production by up to 20% (subject to final mine planning), surpassing initial projections of approximately 350,000 ounces of gold per year.

To date at the Kiaka project, the positive exploration drill results at the new Toega prospects near the Kiaka deposit indicate the presence of new, potentially higher-grade gold zones. Preliminary internal studies indicate that combining the potential higher-grade ore from the Toega zones with ore from the lower-grade Kiaka deposit could have a very positive effect on the economics of the project. An aggressive 2016 exploration drilling program is intended to further explore and conduct infill drilling at the new, higher-grade gold zones along with metallurgical testing and base line permitting work. The Company’s objective is to release an initial resource estimate on the main Toega prospect by the end of 2016.

Based on the positive drill results to date, the exploration budget for West Africa has been increased by $5.5 million, from $9.8 to approximately $15 million. The 2016 exploration budget at the Fekola and Kiaka projects is now $11.4 million and $3.6 million, respectively. B2Gold’s total global exploration budget for 2016 is now $35.4 million.

Exploration Results:

Fekola project – Mali

Fekola exploration:

The Company is currently exploring targets near its 3.72 million ounce gold(2) open-pittable Fekola deposit, which is under construction. Elsewhere in the Fekola area, the Company is following up on recent exploration successes announced earlier this year (refer to B2Gold’s “2015 Exploration Update” news release dated January 20, 2016). For 2016, a total of 98,500 metres of combined diamond, reverse circulation, aircore and auger drilling have been budgeted to advance exploration targets.

Kiwi zone

The Kiwi zone is located approximately 640 metres north of the proposed pit limits of the Fekola deposit. At Kiwi, exploration is targeting a potential new ore shoot, similar to the shallowly north-northwest plunging, main high-grade portion of the Fekola deposit. The shoot occurs approximately 400 metres up-dip from the Fekola Deeps zone in what appears to be a separate and distinct zone of mineralized folds within the Fekola shear zone. So far in 2016, three drill holes totalling 741 metres have been drilled into Kiwi.

Highlights from the Kiwi zone include:

Hole ID From To Length (m) Au g/t
FKD_187 189.85 198.00 8.15 1.95
FKD_188 240.10 244.70 4.60 11.80
and 278.35 285.00 6.65 4.53

Additional drilling is planned at the Kiwi zone for later in the year.

Weaver zone

The Weaver zone is located approximately 2.5 kilometres north of the Fekola pit. Structural and lithological modeling of historical drill data suggests that prospective stratigraphy and the shear zone controlling gold mineralization at the Fekola deposit persist along strike to the north of the Fekola pit. To date, one new hole totalling 240 metres has been drilled into the Weaver target.

Hole FKD_189 intersected:

Hole ID From To Length (m) Au g/t
FKD_189 135.10 150.60 15.50 8.49

Weaver may represent a previously unrecognized shoot-like structure, similar to the Fekola deposit, within the Fekola shear zone. Follow up drilling of this new, high-grade result is currently underway.

Fekola regional exploration:

In addition to exploration near the Fekola deposit, the Company is also conducting a Fekola regional exploration program.

Anaconda zone

Within the Fekola area, ongoing drilling continues to define a significant, near-surface zone of saprolite-hosted gold mineralization at the Anaconda zone. To date, gold mineralization has been intersected within an area 1,300 metres long by 600 metres wide, across an average drill length of 23 metres. Drill lengths are estimated to represent approximately 86% of true thickness. In 2016, 12,589 combined metres of aircore and reverse circulation drilling have been completed to date.

Highlights from Anaconda include:

Hole ID From To Length (m) Au g/t
MSAC_299 20.00 37.00 17.00 2.65
MSAC_303 4.00 12.00 8.00 4.85
MSAC_307 49.00 57.00 8.00 3.88
MSAC_308 4.00 24.00 20.00 2.98
MSAC_311 6.00 21.00 15.00 1.86
MSAC_312 12.00 20.00 8.00 2.69
MSAC_314 31.00 41.00 10.00 3.85
MSAC_323 10.00 29.00 19.00 1.91
MSAC_338 13.00 34.00 21.00 2.68
MSAC_347 3.00 26.00 23.00 2.80
MSAC_348 38.00 50.00 12.00 2.29
MSAC_349 31.00 49.00 18.00 5.51
MSAC_350 9.00 22.00 13.00 1.95
MSAC_421 12.00 20.00 8.00 2.51
MSAC_447 14.00 30.00 16.00 2.72
MSAC_449 11.00 22.00 11.00 1.97
MSAC_494 5.00 17.00 12.00 6.92
MSAC_532 9.00 27.00 18.00 1.41
MSAC_551 6.00 17.00 11.00 2.14
MSAC_553 15.00 35.00 20.00 1.08
MSAC_561 20.00 37.00 17.00 3.05
MSAC_636 5.00 19.00 14.00 2.03
MSR_096 25.00 33.00 8.00 6.76
MSR_097 21.00 30.00 9.00 4.36
MSR_101 14.00 40.00 26.00 5.44
MSR_103 10.00 36.00 26.00 2.77
MWBH_001 30.00 41.00 11.00 2.34

Note: The above reported intervals of saprolite-hosted gold mineralization are >0.2 g/t gold, with a maximum of 5 m internal waste.

Adder zone

The Adder zone comprises saprolite-hosted gold mineralization located immediately west of and contiguous with Anaconda. Mineralization at Adder occurs within a northerly trending linear zone approximately 2,450 metres long by 250 metres wide, across an average drill hole length of 18 metres. Drill lengths are estimated to represent approximately 86% of true thickness. In 2016, 8,484 metres of combined aircore and reverse circulation have been completed to date at Adder.

Highlights from Adder include:

Hole ID From To Length (m) Au g/t
MSAC_185 8.00 12.00 4.00 5.14
MSAC_192 13.00 36.00 23.00 2.78
MSAC_199 10.00 22.00 12.00 1.71
MSAC_200 11.00 27.00 16.00 2.10
MSAC_376 6.00 27.00 21.00 1.69
MSAC_379 6.00 19.00 13.00 1.68
MSAC_382 7.00 15.00 8.00 3.70
MSAC_403 7.00 15.00 8.00 2.71
MSAC_405 5.00 17.00 12.00 1.91
MSAC_436 36.00 40.00 4.00 9.54
MSAC_471 18.00 36.00 18.00 1.95
MSAC_472 13.00 20.00 7.00 5.43
MSAC_475 13.00 34.00 21.00 3.02
MSAC_476 22.00 34.00 12.00 3.22
MSAC_577 3.00 9.00 6.00 5.06
MSAC_587 19.00 30.00 11.00 3.67
MSAC_593 19.00 33.00 14.00 1.86
MSAC_594 10.00 26.00 16.00 2.92
MSAC_595 28.00 36.00 8.00 3.08
MSAC_610 4.00 13.00 9.00 2.43
MSAC_743 49.00 51.00 2.00 18.46
MSR_105 13.00 31.00 18.00 1.74

Note: The above reported intervals of saprolite-hosted gold mineralization are >0.2 g/t gold, with a maximum of 5 m internal waste. At both Anaconda and Adder, combined aircore and reverse circulation drilling has been completed on 40 metre by 40 metre spaced centres. Resource evaluation studies for these areas are to be completed later this year.

Additional target areas

Additional zones of saprolite-hosted gold mineralization have been discovered at Mamba and Boomslang, which occur approximately 1 kilometre east of Adder and Anaconda, respectively. Highlights from these new areas include MSAC_236, 8 metres at 1.36 g/t gold from 14 to 22 metres downhole (Boomslang) and MSAC_275, 8 metres at 2.72 g/t gold from 18 to 26 metres downhole (Mamba). Follow up work in these target areas is planned for later in 2016.

Additional drilling has also been conducted at the Cobra zone, located approximately 1,400 metres east of the Boomslang zone. Cobra has a strong element of structural control and has been defined over a strike length of 2 kilometres and averages approximately 20 metres in width. Highlights from the zone of saprolite-hosted gold mineralization at Cobra include MSAC_131, 20 metres at 4.07 g/t gold from 29 to 49 metres, and MSAC_121, 17 metres at 2.97 g/t gold from 22 to 39 metres.

Drilling is ongoing at the new saprolite-hosted gold zones as well as additional targets in the Fekola area. Moreover, internal studies are currently underway to determine whether the new discoveries contain sufficient resources to supplement the Fekola project or if they constitute a viable, standalone gold project. The widespread occurrence of gold in saprolite is viewed as a positive indication of the potential for underlying bedrock-hosted gold mineralization.

About Fekola

The Fekola project is located in southwestern Mali in the regional province of Kayes, approximately 365 kilometres west of the capital, Bamako. On June 11, 2015, the Company announced robust results from Fekola’s optimized feasibility study. Based on probable mineral reserves, the current average annual production for the first seven years is approximately 350,000 ounces of gold per year at average cash operating costs of $418 per ounce of gold (based on low-grade stockpiling in the initial years of operation) and for the 12.5-year life of mine plan, approximately 276,000 ounces of gold per year at average cash operating costs of $552 per ounce of gold. The Fekola mine is currently under construction, and is on schedule and on budget to commence production in late 2017.

Kiaka regional exploration – Burkina Faso

In addition to the exploration program at the Fekola project in Mali, the Company is also conducting a regional exploration program at the Kiaka project in Burkina Faso.

The initial positive drill results from the discoveries at the new Toega prospects in the Kiaka area were presented earlier this year (refer to B2Gold’s “2015 Exploration Update” news release dated January 20, 2016). Results included up to 106 metres at 2.21 g/t gold from 75 metres in hole NKRC047. In 2016, a total of 12,320 metres of combined reverse circulation and diamond drilling are budgeted in order to better define the limits of the new zones of gold mineralization and to explore the immediate area for additional mineralization. A program of infill drill holes and metallurgical testing on known mineralization commenced on May 31, 2016, and is ongoing.

In addition, a reconnaissance aircore drilling program to the east of known mineralization intersected 16 metres at 4.16 g/t gold, including 6 metres at 9.90 g/t gold associated with quartz veining hosted in siltstone in hole NKAC_012.

Additional results from the new discoveries will be released as they become available later this year.

About Kiaka

The Kiaka project is located in southcentral Burkina Faso, approximately 140 kilometres southeast of the capital, Ouagadougou. Kiaka is one of the largest undeveloped gold resources in West Africa, and contains measured mineral resource estimates of 27.3 million tonnes at 1.09 g/t gold for 953,000 ounces; indicated mineral resource estimates of 96.8 million tonnes at 0.96 g/t gold for 2.99 million ounces; and inferred mineral resource estimates of 27.3 million tonnes at 0.93 g/t for 815,000 ounces(3).

About B2Gold

B2Gold is a Vancouver-based, international gold mining company with four operating mines, one mine under construction and numerous exploration projects across four continents in various countries, including Nicaragua, the Philippines, Namibia, Mali and Burkina Faso. Construction of B2Gold’s Fekola mine in southwest Mali is on schedule and on budget, and is projected to commence production at the end of 2017. As a result, B2Gold is well positioned to maintain its low-cost structure and growth profile, with production increasing to approximately 800,000 to 850,000 ounces annually by 2018.

B2Gold’s Quality Assurance/Quality Control

Quality assurance and quality control procedures include the systematic insertion of blanks, standards and duplicates into the core, reverse circulation and aircore drilling sample strings. The results of the control samples are evaluated on a regular basis with batches re-analysed and/or resubmitted as needed. All results stated in this announcement have passed B2Gold’s quality assurance and quality control (“QA/QC”) protocols. Tom Garagan, Senior Vice President Exploration, is the Qualified Person as defined under National Instrument 43-101, who has reviewed and approved the contents of this news release.

Analytical methods:

The primary laboratory for Fekola is SGS Laboratories in Bamako, Mali, where samples are prepared and analyzed using 50g fire assay with atomic absorption finish and/or gravimetric finish. Bureau Veritas in Abidjan, Cote d’Ivoire is the umpire laboratory.

The primary laboratory for Kiaka regional exploration is ALS Minerals Laboratories in Ouagadougou, Burkina Faso, where samples are prepared and analyzed using 50g fire assay with atomic absorption finish and/or gravimetric finish. Bureau Veritas in Abidjan, Cote d’Ivoire is the umpire laboratory.

ON BEHALF OF B2GOLD CORP.

“Tom Garagan”

Senior Vice President of Exploration

The Toronto Stock Exchange neither approves nor disapproves the information contained in this news release.

This news release includes certain “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable Canadian and United States securities legislation, including projections of future financial and operational performance, statements with respect to future events or future performance, production estimates, anticipated operating and production costs, budgets and statements regarding anticipated or planned exploration, development, construction, production, permitting and other activities on the Company’s properties and the results thereof, including the construction and potential production from the Fekola mine by the end of 2017, the projections contained in the Fekola optimized feasibility study and Kiaka pre-feasibility study, including the estimated annual gold production, cash operating costs and mine life at Fekola and Kiaka, the planned exploration at Fekola and Kiaka and the results thereof, estimates of true thicknesses, the identification of potential new mineral resources, mineralization or discoveries; the potential for underground mining at Fekola, the potential throughput at Fekola of up to 5 million tonnes per year in the initial years of production, the estimated capital expenditures required to reach such throughput and the potential to increase estimated production at Fekola; the effect of adding mineralization from the Toega prospect on the economics of the Kiaka project and the release of a gold resource estimate on the main Toega prospect by the end of 2016; and the Company producing approximately 800,000 to 850,000 gold ounces per year by 2018. Estimates of mineral resources and reserves are also forward-looking statements because they constitute projections regarding the amount of minerals that may be encountered in the future and/or the anticipated economics of production, should a production decision be made. All statements in this news release that address events or developments that we expect to occur in the future are forward-looking statements.

Forward-looking statements are statements that are not historical facts and are generally, although not always, identified by words such as “expect”, “plan”, “anticipate”, “project”, “target”, “potential”, “schedule”, “forecast”, “budget”, “estimate”, “intend” or “believe” and similar expressions or their negative connotations, or that events or conditions “will”, “would”, “may”, “could”, “should” or “might” occur. All such forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Forward-looking statements necessarily involve assumptions, risks and uncertainties, certain of which are beyond B2Gold’s control, including the assumptions contained in the Fekola optimized feasibility study and Kiaka pre-feasibility Study; risks associated with the uncertainty of reserve and resource estimates; volatility of metal and currency prices; risks and dangers inherent in exploration, development and mining activities; financing risks; ability to obtain any necessary permits, consents or authorizations required for its activities; shortages or cost increases in necessary equipment, supplies and labour; regulatory, political and country risks; litigation risk; risks related to hedging activities; risks related to environmental regulations or hazards and compliance with complex regulations associated with mining activities; the ability to replace mineral reserves and identify acquisition opportunities; unknown liabilities of companies acquired by B2Gold; risks related to operations in foreign countries and compliance with foreign laws; risks related to remote operations and the availability adequate infrastructure; fluctuations in price and availability of energy and other inputs necessary for mining operations; risks related to reliance upon contractors, third parties and joint venture partners; challenges to title or surface rights; dependence on key personnel; the risk of an uninsurable or uninsured loss; changes in tax laws; and community support for operations; as well as other factors identified and as described in more detail under the heading “Risk Factors” in B2Gold’s most recent Annual Information Form and B2Gold’s other filings with Canadian securities regulators and the U.S. Securities and Exchange Commission (the “SEC”), which may be viewed at www.sedar.com and www.sec.gov, respectively.

The list is not exhaustive of the factors that may affect the Company’s forward -looking statements. There can be no assurance that such statements will prove to be accurate, and actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits B2Gold will derive therefrom. The Company‘s forward-looking statements reflect current expectations regarding future events and operating performance and speak only as of the date hereof and the Company does not assume any obligation to update forward-looking statements if circumstances or management’s beliefs, expectations or opinions should change other than as required by applicable law. For the reasons set forth above, you should not place undue reliance on forward-looking statements.

The disclosure in this news release regarding mineral properties was prepared in accordance with NI 43-101, which differ significantly from the mineral reserve disclosure requirements of the SEC set out in Industry Guide 7. In particular, NI 43-101 permits companies to use the term “resources”, which are not “reserves”. U.S. companies subject to the disclosure requirements of the SEC are not normally permitted to disclose mineralization unless they constitute “reserves” by U.S. standards in documents filed with the SEC. Accordingly, while mineral resources are recognized and required to be disclosed by NI 43-101, the SEC’s disclosure standards normally do not permit U.S. companies to disclose mineral resources in their filings with the SEC. Investors are specifically cautioned not to assume that any part or all of “indicated mineral resources” or “inferred mineral resources” will ever be converted into SEC defined mineral reserves. Further, while NI 43-101 permits companies to disclose economic projections contained in pre-feasibility studies, which are not based on “reserves”, U.S. companies are not normally permitted to disclose economic projections for a mineral property in their SEC filings prior to the establishment of “reserves”. In addition, the definitions of “reserves” and related terms under NI 43-101 and the SEC’s Industry Guide 7 differ significantly. Under SEC standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Among other things, all necessary permits would be required to be in hand or issuance imminent in order to classify mineralized material as reserves under the SEC standards. As a result, reserves disclosed by the Company may not qualify for reserves as defined in the SEC’s Industry Guide 7. For the above reasons, information contained in this news release that describes the Company’s mineral reserve and resource estimates or that describes the results of the Fekola optimized feasibility study or Kiaka pre-feasibility study is not comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of the SEC.

(1) For additional details regarding the optimized feasibility study, please refer to the Company’s news release dated June 11, 2015 or the technical report in respect of the optimized feasibility study which is filed under the Company’s corporate profile on SEDAR at www.sedar.com.
(2) Probable mineral reserve estimates as disclosed in the Fekola optimized feasibility study.
(3) The mineral resource estimate for the Kiaka project was prepared as of January 8, 2013 by Ben Parsons, MSc, MAusIMM (CP), principal consultant for SRK Consulting (UK) Limited, a Qualified Person as defined under NI 43-101. The estimate reflects the attributable mineral resources based on B2Gold Corp’s 81% interest in the Kiaka project. Mineral resources are estimated using best practices as defined by the CIM and reporting of mineral resources is compliant and in accordance with the disclosure requirements of NI 43-101. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Due to the uncertainty that may be attached to inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Mineral resource numbers have been rounded to reflect the accuracy of the estimate and numbers may not add due to rounding.
B2Gold Corp.
Ian MacLean
Vice President, Investor Relations
604-681-8371
imaclean@b2gold.comB2Gold Corp.
Katie Bromley
Manager, Investor Relations & Public Relations
604-681-8371
kbromley@b2gold.com
www.b2gold.com


Komet Resources Acquires the Moussala Gold Permit Located in Mali, West Africa

Komet Resources Inc. (TSXV:KMT) announced the acquisition of the Moussala exploration permit located in the Kenieba gold mining camp in the Republic of Mali, West Africa.

As quoted in the press release:

The permit title covering 67 km2 issued by the Ministry of Mines, is valid for a period of 7 years and is entirely held (100%) by Komet Mali Sarl, a subsidiary fully owned by Komet Resources Inc.  All eventual commercial gold production from the permit will be subjected to a 2% net smelter royalty (NSR) payable to the previous owner. Located about 300 km to the west of Bamako, the country’s capital, the permit is easily accessible via the recently rebuilt international highway that links Bamako to Dakar on the Atlantic coast in Senegal and passes through the Village of Dabia, a few kilometres to the northeast of the permit (see link for location map). Keniaba, the prefectural city is 25 km to the north of Dabia along the same road.

In the northern part of the permit the Walia (or M1) anomaly has been outlined by a geochemical soil sampling survey completed by Ashanti Mali SA in 1997 and is the locus of a major artisanal mining site.  The anomalous area covers an area of 1,600 m by 1,000 m, with gold values as high as 4,919 ppb.

Because of their relative proximity the M3, M5 and M7 anomalies have been regrouped under the Kabaya zone.  These targets located in the south-east portion of the permit have been uncovered during the same soil survey program by Ashanti Mali SA, in 1997. They have been prospected in some details along the southern boundary of the permit.  The geology of this geochemical target consists of strongly altered metasedimentary units cut by quartz stockworks and veins structurally related to a north-east to north-north-east trending shear zone. The eastern part of the zone has been prospected with trenches and two reverse circulation (RC) drilling campaigns by Robex Resources Inc., in 2013 and 2014. It covers an area of 500 m x 200 m drilled with 62 holes totaling 3,768 m. The best results are reported by Robex in a press release dated May 28, 2014.

Komet Resources President and CEO, André Gagné, stated:

We believe that this property will develop into a first class asset for the company. The positive results generated from the exploration work completed to date by previous stakeholders are opening-up a promising gold potential for the Moussala permit.

Connect with Komet Resources Inc. (TSXV:KMT) to receive an Investor Presentation.

 


Nexus Gold to Acquire Bouboulou Gold Concession in West Africa

Nexus Gold (TSXV:NXS) announced it has entered into a letter of intent with Bureau D’Tude des Geosciences et de L’Enviroment, pursuant to which Nexus will acquire the right to earn up to 100-per-cent interest in the Bouboulou gold concession located in Burkina Faso, West Africa.

As quoted in the press release:

Nexus will have an option to acquire up to a 75% interest in the Bouboulou concession, in consideration for cash payments of Cdn$500,000 and the issuance of 900,000 common shares of Nexus, over a period of three years. Following acquisition of a 75% interest in the concession, Nexus will have the option to acquire the remaining 25% interest through a cash payment of Cdn$1,000,000 with a 1% net smelter return royalty remaining with the Optionor.

With the Bouboulou concession, the Company is establishing a portfolio of advance stage exploration gold projects for development. Bouboulou joins the Company’s flagship Walker Ridge Gold Project which is located in Nevada, USA where work is ongoing. The Company will also continue to fully utilize leading-edge technologies, such as Element Detection Technology (EDT) in its exploration work. EDT was successfully used at Walker Ridge in further defining drill targets.

Nexus Gold President and CEO, Peter Berdusco, stated:

Bouboulou is an excellent property with four zones of gold mineralization identified to date from previous exploration work. Prior drilling has defined high-grade intercepts giving the property exceptional resource potential. Warren Robb, P.Geo, and director of Nexus, is familiar with the project having reviewed the property in 2010 and later in 2012 while employed in Burkina Faso. We are extremely pleased to have negotiated the terms with the vendors and look forward to executing the definitive agreement in the coming weeks.

Connect with Nexus Gold (TSXV:NXS) to receive an Investor Presentation.


Asante Gold Provides a Look at the Start of Drilling in Bentanase, Africa

Asante Gold Corporation (CSE:ASE) announced on October 8, 2015 plans to commence a diamond drilling program on the Betanase concession to test the strong gold-in-soil anomaly previously outlined by Perseus Mining Ltd.

Asante Gold has provided images of the work now underway

Looking East  Towards Soil Gold Target

Looking East Towards Soil Gold Target

Don Allen Logging the First Few Boxes at the Drill Site

Engineer Don Allen Logging the First Few Boxes at the Drill Site

Connect with Asante Gold Corporation (CSE:ASE) to receive an Investor Kit


West Africa: A Look at Gold Mining in Ghana, Mali and Burkina Faso

When it comes to gold extraction, West Africa has made itself known a gold mining hot spot with several companies exploring and mining the region’s significant gold reserves.

To better understand the gold mining endeavors in West Africa, here is a look at the several companies mining in Ghana, Mali, and Burkina Faso.

Ghana

In Africa, Ghana is one of the top gold producing countries. The country supports a large industry of artisanal mining, however, according to the BBC, dropping gold prices threaten this way of life. Artisan mining workers take soil to sheds where they pan for gold, bind deposits together with mercury, roast the rock and sell the gold nuggets at market. Unfortunately, for the miners, lower gold prices make this process less worthwhile. This is beneficial for the government, who is making an effort to cut down on illegal gold mining. This change in the lifestyle of many in Ghana is happening quickly.

Of course, mining companies can take steps to mitigate the impact gold prices have on their own finances. The government welcomes their activity, as they are legal miners of gold. For this reason, gold mining in Ghana by resource companies continues unabated. In 2013, Ghana was the world’s 10th-largest gold producer with an output of 85 metric tons.

One of the companies working on a gold project in Ghana is Asanko Gold (TSX:AKG) with its flagship Asanko gold mine. The development phase project has a res ource of 7.5 million ounces of measured and indicated gold. The company expects to have the mine producing at a steady state of greater than 200,000 ounces of gold per year in the second quarter of 2016.

With a focus on West Africa, Perseus Mining Limited (ASX:PRU) holds two gold projects in Ghana. Perseus’ flagship project is the Edikan gold mine which has a 5.3 million ounces of measured and indicated gold resource. Edikan first produced gold in 2011, and by January 2012, the company was in commercial production. Perseus also has the Grumsea project in Ghana.

Golden Star (NYSEMKT:GSS) is a mining company that has been operating in Ghana since 1999. It holds a 90 percent interest in the Bogoso and Wassa open-pit gold mines, and is currently in the process of increasing its operation through pursuing lower-cost ore ounces for production.

Mali

Behind Ghana, gold production in Mali totaled 67.4 tons in 2013, making the country Africa’s third-largest gold producer after South Africa and Ghana.

Mali while the country has a significant number of gold reserves, it also has its fair share of illegal mining. In an effort to clean up its mining sector, the government recently, canceled 130 mining permits, accounting for approximately 30 percent of existing permits. The cancellations mean the permits are effectively free for the government to issue to other investors that will pursue exploration. But not to be disheartened, the government intends to review all existing mining contracts, licenses and titles and renegotiate those that are not in the best interest of the country, according to Reuters.

The country is home to several big gold companies, including IAMGOLD (TSX:IMG). IAMGOLD operates two producing mines the Sadiola gold mine and the Yatela gold mine in Mali.

Another big name for the country is AngloGold Ashanti (ASX:AGG) with mines at Morila, Sadiola and Yatela. The latter two are joint ventures between AngloGold Ashanti and IAMGOLD. Morila is a joint venture between Ashanti, Randgold Resources and the government of Mali.

Apart from the Morila JV with AngloGold Ashanti, Randgold Resources (LSE:RRS) also has the Loulo-Gounkoto mine complex, a joint venture with the government of Mali.

Burkina Faso

Burkina Faso’s economy depends to a strong degree on the price of gold on the international market. In 2013, when that price fell, the country’s real growth was 6.9 percent, down from the previous year’s 9 percent. Agriculture and mining are the largest and most impactful industries in the country. As such, the performance of the mining sector and of gold prices internationally are both very important to Burkina Faso. Currently, the government is making infrastructure improvements on buildings and roads. Major roads are being paved, while others are being formally created in order to make further development possible.

TrueGold (TSXV:TGM) has projects in Burkina Faso since 2003, just when the country’s potential as a gold producer was coming into view. The country’s geology is similar to that of nearby nations like Mali and Ghana that produce gold. The company found the belts of favorable rocks for gold deposits in Ghana extend into Burkina Faso. True Gold’s Karma and Liguidi projects in Burkina Faso are under exploration, and a feasibility study at Karma is about to begin.

Roxgold (TSXV:ROG) operates one project, the Yaramoko project, in Burkina Faso. The project is situated in the southwestern part of the country in the province of Balé. Yaramoko is within the Hounde greenstone belt where other gold projects lie. Currently, Roxgold is advancing a discovery of high-grade gold and has completed a feasibility study for it. It is also completing exploration activity at other areas within the permit.

Endeavour Mining (TSX:EDV), a company that operates over much of West Africa, has aproducing mine at the Youga project, of which it owns 90 percent interest. Youga has been producing since 2008, and yielded 89,448 ounces of gold in 2013. Endeavour is investigating the possibility of trucking material from the nearby Ouare deposit, 40 kilometers away, to the Youga plant to add three years to the total life of the mine.

IAMGOLD also operates in Burkina Faso, with its Essakane gold mine located in the country.

This article was originally published on Gold Investing News on September 24, 2014. 


Kinross Gold Comments on Regulatory Review in West Africa

After hours Friday, Kinross Gold Corp. (TSX:K,NYSE:KGC) put out a press release to address “the circumstances surrounding an ongoing regulatory review” of its mining operations in West Africa.

The company emphasizes in its release that it is cooperating with all aspects of the review, and that the fact that the review is happening does not mean “that any violation has occurred.”

Its press release states:

In August 2013, Kinross received information regarding allegations of improper payments made to government officials and certain internal control deficiencies at its West Africa mining operations. Kinross takes such allegations very seriously and action was immediately taken in accordance with Kinross’ Whistleblower Policy. External legal counsel was immediately retained to conduct an objective internal investigation into the allegations.

In March and December 2014, and July 2015, Kinross received subpoenas from the United States Securities and Exchange Commission (the “SEC”) seeking information and documents on substantially the same subjects as had previously been raised. In December 2014, Kinross received similar requests for information from the United States Department of Justice (the “DOJ”).

Kinross is fully cooperating with the SEC and DOJ and continues to diligently pursue its own internal investigation, which, over the course of the past 25 months, has not identified issues that Kinross believes would have a material adverse effect on the Company’s financial position or business operations. Our internal investigation is ongoing, and additional issues or facts could become known as the investigation continues.

Click here to read the full Kinross Gold Corp. (TSX:K,NYSE:KGC) press release.


Gold Mining in South Africa

 

This article was originally published on Gold Investing News on August 30, 2010.

By Dave Brown – Exclusive to Gold Investing News

Gold and diamond discoveries played an important part in the growth of the early Republic of South Africa, and historically the country was the world’s largest gold producer for many years before conceding the top spot to China in 2007. Gold was discovered in the area known as Witwatersrand (“Wits”), triggering what would become the Witwatersrand Gold Rush of 1886.

South Africa is currently estimated to have the world’s largest quantity of gold reserves with 6000 tonnes; however, China has maintained its leading position in gold production through the end of 2009, followed by Australia, South Africa and the United States. South Africa produced 210 tonnes of gold in 2009 and its mineral wealth is appreciated by most investors as it is the world’s largest producer of diamonds, platinum, vanadium, manganese, chrome, and vermiculite. It is also the second largest producer of palladium, ilmenite, rutile and zirconium; and the world’s third largest coal exporter.

Geological Perspective

South Africa’s expansive gold ore deposits represent a considerable part of the world’s reserves with approximately 95 percent of the mines operating underground reaching depths of over 3.8 km. The main gold producing area is concentrated on the Archaean Witwatersrand Basin. The Wits has been mined for more than 100 years, producing more than 41,000 tonnes of gold, and remains a relatively underdeveloped source of the yellow metal.

The Wits is a gold placer deposit, unlike most other gold deposits in the world, with gold being hosted by conglomerates and grits. The sedimentary basin is massive and stretches through an arc of approximately 400km across the Free State, North West and Gauteng Provinces. The gold bearing conglomerates or reefs are generally tabular with varying dips. Most of the Wits is covered by later stage sediments of the Ventersdorp and Karoo groups, with an outcropping in Johannesburg, which started the country’s gold rush and resulted in formation of the city of Johannesburg.

South Africa does have other smaller gold producing regions outside of the Wits, in the form of Archaean greenstone belts. The main gold producing greenstone belts are the Barberton Greenstone Belt and the Kraaipan greenstone belt. The Barberton greenstone belt is situated in the Mpumalanga province, just north of Swaziland. The Kraaipan belt is located west of Johannesburg, near Kuruman. Other smaller belts exist in the Northern Province, but have been worked sporadically.

Economic Context

South Africa reaped the benefits of macroeconomic stability and a global commodities boom from 2004 to 2008; however, growth began to slow in the second half of 2008 due to the global financial crisis’ impact on commodity prices and demand. Additionally, South Africa began to experience an electricity deficit towards the end of 2007. The national power supplier encountered problems with aging generating stations which necessitated “load-shedding” cuts to businesses and residents in the major cities.

South Africa’s former economic policy has traditionally been fiscally conservative, focusing on attaining a budget surplus and controlling inflation. The current government largely follows the same prudent policies, but must contend with the impact of the global crisis and is facing growing pressure from special interest groups to use state-owned enterprises to deliver basic services to low-income areas and to increase job growth. More than one-quarter of South Africa’s population currently receives social grants. Unemployment remains relatively high and outdated infrastructure has constrained growth. Legacy economic problems remain from the apartheid era – especially poverty, lack of economic empowerment among disadvantaged groups and a shortage of public transportation.  Last year, GDP contracted slightly by approximately 2 percent.

Investment Opportunities

Gold Fields (NYSE:GFI) is one of the world’s largest unhedged producers of gold, with operations at Driefontein, Kloof, Beatrix and South Deep, in addition to gold reserves in Ghana, Australia and Peru.  Gold Fields is primarily involved in underground mining in South Africa, although in Peru it has exposure to surface gold and copper mining and related activities, including exploration, processing and smelting.  The company has estimated total attributable mineral reserves of 81 million ounces and mineral resources of 271 million ounces. Goldfields aims to increase production at South Deep to 300,000 ounces during 2010. Goldfield’s South Deep mine is situated in the districts of Westonaria and Vanderbijlpark in the Gauteng Province. The South shaft has been recommissioned with the ore body remodeled for the next 30 years. The project is on track for build up to full production by the end of 2014.

AngloGold Ashanti (NYSE:AU) is a leading global producer of gold, with about one third of its operations in South Africa at West Wits and Vaal River. As of the end of last year, AngloGold Ashanti’s ore reserve totaled 71.4 million ounces with the company producing 4.6 million ounces of gold from its operations. Although the company’s primary source of revenue is derived through the production of gold, it also generates income through sales of silver, uranium oxide and sulphuric acid. On October 5, 2009, AngloGold formed a joint venture with De Beers in marine exploration and mining. On August 12, the company reported strong earnings of more than double the previous quarter to $129 million largely due to posting lower costs and an increase in production from its mines in South Africa.

Harmony Gold Mining Company (NYSE:HMY) is the 5th largest gold producer in the world.  Its operations are located primarily on the Witwatersrand Basin, encompassing ten underground operations, an open-pit mine and surface operations that span four provinces, namely Gauteng, North West Province, Mpumalanga and the Free State. Last year, the company reported ore reserves of 48.2 million ounces and mineral resources of 215.7 million ounces.  Harmony Gold hopes to complete the expansion at its Doornkop South Reef mine by 2015. Doornkop produced 64,000 ounces of gold in the 2009 financial year, but is expected to produce 250,000 ounces per year at full production capacity.  Earlier in August, the company announced a significant increase in the mineral resource at the Wafi-Golpu porphyry copper-gold project, which is part of a joint venture in Papua New Guinea. This mineral resource for Wafi-Golpu now contains 16 million ounces of gold and 4.8 million tonnes of copper. Harmony reports the lowest average cost per tonne amongst South African underground gold operations.

DRDGold (NASDAQ:DROOY) is a mid level, unhedged gold producer. In 2009, DRDGold produced 247,690 ounces ,and declared mineral resources of 56.4 million ounces and ore reserves of 6.0 million ounces.  Last week, the company reported a substantial increase in net profit after tax for the quarter reflecting the impact of continuing steps by the company to de-risk its business.  The objectives included transferring environmental rehabilitation liabilities and the voluntary liquidation of offshore subsidiaries.

Vantage Goldfields (ETR:3V3) is a junior level exploration and development company with three projects in the under-explored Barberton goldfield, South Africa’s largest greenstone belt.  The company reports a resource base of 3.47 million ounces, which they are aiming to increase in order to become a mid-tier gold producer in the next three years.  This objective is to be accomplished through staged low-risk gold production expansion based on expanding currently operating, or reopening dormant mines, and applying underground bulk mining techniques to relatively shallow ore bodies.  It will also depend on continued exploration of strategic holdings in the Barberton goldfield, which may enhance the gold resource inventory and support longer term growth beyond 100,000 ounces per year.  Earlier this month the company announced successful completion of an independent Bankable Feasibility Study (BFS) on Stage 1 of the proposed shallow underground mining production plan at its Barbrook Project.

August 30th’s Gainers: Top 5 Best Performing Gold Stocks of the Day

Company Symbol Price Currency Growth
Aurizon Mines TSE:ARZ 7.04 CAD 8.31%
Northgate Minerals Corp TSE:NGX 3.16 CAD 1.61%
Nevsun Resources Ltd TSE:NSU 4.82 CAD 1.47%
Yamana Gold Inc TSE:YRI 10.95 CAD 1.29%
Exeter Resource Corporation TSE:XRC 6.76 CAD 1.20%

Drill Tracker Weekly: West African Finds New Near-surface Zone at M3 Prospect

mackie

Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.

West African Resources (TSXV:WAF)

Price: $0.08

Market cap: $21.6 million

Working capital: $5 million

Project: Tanlouka

Country: Burkina Faso

Ownership: 90 percent

Leachable reserve: Mankarga — 3.0 Mt @ 1.10 g/t Au

Project status: New brownfields discovery

  • West African Resources announced the discovery of a new gold zone less than two kilometres from the starter pit at its 90% owned feasibility stage Mankarga5 prospect on the Tanlouka project in Burkina Faso. West African acquired the Tanlouka project through the August 2013 acquisition of Channel Resources
  • Highlights from the current wide spaced reverse circulation (RC) drilling intersected 32 metres grading 5.02 g/t Au starting from surface. The mineralization occurs within a zone of quartz veinlets along a sheared contact between the metasediments and a diorite intrusion.
  • A May 2015 Prefeasibility Study for the starter project, outlines a low capex, ($46 million), project producing 50,000 ounces of gold per year over seven years at an all-in cash cost of $538/oz for the first three years and $749/oz for life of mine. The starter pit is designed to mine heap leachable ore to a depth of 130 metres with a 2:1 strip ratio. A larger resource of sulphide material at a grade of 1.2 g/t Au exists below the pit outline but is not included in the current mine plan.
  • Using an $1,100/oz gold price the project is projected to return an after tax NPV (5%) of $42 million, and IRR of 30% and a payback period of 26 months. The Company has extended the completion of the feasibility study to Q4/2015 to allow new oxide mineralization from M1 and M3 to be incorporated into the mine plan. The Company expects to continue RC drilling in October after the end of the wet season.

west african 2

Discovery history: The project was acquired through the acquisition of Channel Resources in August 2013. Channel had originally optioned the property as part of the Bombore project in 1994.

Current holes: 32 metres @ 5.02 g/t Au; 15 metres @ 0.83 g/t Au

 

Risk Analysis

Data contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note – a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity – it is an information reference source to help quantify the meaning and relevance of early stage exploration results.

Relevant Disclosures Applicable to: Drill Tracker Weekly

  1. The research analyst or a member of the research analyst’s household owns and/or has options to acquire shares of the subject issuer. At the date of this release the author, Wayne Hewgill, owns no shares in the companies in this report:

Analyst Certification

I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.


South African Union Rejects Pay Offer

Bloomberg reported that a South African gold miners union has rejected a pay offer from operators, including AngloGold Ashanti Ltd. (NYSE:AU), stopping just short of call a strike.

As quoted in the market news:

Association of Mineworkers and Construction Union members gathered at Sibanye Gold Ltd.’s Beatrix mine Sunday to consider the final wage proposal made by producers such as Harmony Gold Mining Co. The union speaks for about 30 percent of the 94,500 employees represented in the talks.

“If we need to go march at their offices, we will,” AMCU President Joseph Mathunjwa told thousands of workers at the stadium next to a mine shaft about 300 kilometers (186 miles) south of Johannesburg.

Sibanye and AngloGold, the world’s third-largest producer, proposed on July 30 to raise monthly pay for entry-level workers by 1,000 rand ($79) annually for the three years started July 1. Harmony offered a 500-rand increase. Basic pay is currently about 5,800 rand. Living-out allowances, for miners who choose not to live in provided housing, will be raised by 100 rand in the first year from 2,000 rand now.

The National Union of Mineworkers, the biggest labor group in gold, lowered its demand last month for basic pay to 9,500 rand. Still, that’s at least 60 percent more than the current wage.

Click here to read the full Bloomberg report.


Asanko Sees Mine Becoming One of Africa’s Largest Gold Operations

Asanko Gold Inc. (TSX:AKG,NYSEMKT:AKG) released the results of a Phase 2 expansion prefeasibility study. It combines the Phase 1 Obotan project, which is currently under construction, with the Esaase project into Phase 2 of the Ghana-based Asanko gold mine.

As quoted in the press release:

The Phase 2 expansion will integrate the Esaase deposit with the Phase 1 Obotan project to create one large, multi-pit mine producing an average of 411,000 ounces of gold over a 10.5 year Life of Mine (‘LoM’) from 2018. The ore will be mined and crushed at Esaase and then conveyed to a central processing facility at Obotan. The processing facility will be expanded with a 5 million tonnes per annum (‘Mtpa’) flotation plant which will be built alongside the Phase 1 3Mtpa Carbon-in-Leach (‘CIL’) plant. In addition the annual throughput of the Phase 1 CIL plant will be upgraded and increased to 3.8Mtpa by adding two extra CIL tanks to allow for the blending of oxide ores from Esaase with feed from the Phase 1 pits.

The combined project, at an assumed US$1,300 per ounce gold price, yields a 27% after-tax internal rate of return (‘IRR’) with a net present value (‘NPV’) of US$770 million at a 5% discount rate.

Peter Breese, president and CEO of Asanko, commented:

The outcomes from the Phase 2 expansion study have exceeded our expectations and will deliver significant value to our shareholders.

At the time of the merger with PMI Gold in December 2013 we estimated that up to US$100 million in NPV synergies (based on US$1,400 per ounce gold price) could be achieved by developing the assets in a phased approach and leveraging off shared infrastructure and overheads. We have been able to increase those expected NPV synergies to over US$147 million even though we have used a lower gold price of US$1,300 per ounce.

The incremental value and returns of Phase 2 further enhance what was an already robust project and will result in the Asanko Gold Mine becoming one of the largest gold mining operations in Africa with lowest quartile all-in sustaining costs. This highly competitive cost base, which includes corporate overheads, has always been a key driver in our development strategy.

In addition, the expansion of the processing facility to integrate the Phase 2 flotation plant with the Phase 1 CIL plant will give the Asanko Gold Mine total operating flexibility to handle all the different types of orebodies that are currently within the mine plan as well as give us flexibility to fully optimize near mine deposits that may be discovered in the future.

Click here to read the full Asanko Gold Inc. (TSX:AKG,NYSEMKT:AKG) press release.


Yearly Wage Negotiations Could Hurt South African Gold Sector

Mining Weekly reported that Srinivasan Venkatakrishnan, CEO of AngloGold Ashanti Ltd. (NYSE:AU), believes that yearly wage negotiations in South Africa between gold companies and their employees could bring “dire economic consequences for the local gold sector.”

As quoted in the market news:

Gold companies’ management were now looking to reach a new accord with employees and their labour unions to arrest this downward spiral and restore the industry to a more sustainable long-term footing.

‘It is crucial for the future of one of South Africa’s key economic contributors, and indeed for individual mines and their employees, given that companies cannot be expected to persist with unprofitable operations,’ AngloGold said in statement.

The companies would, this year, propose an ‘Economic and Social Sustainability Compact’, which would comprise a mutually agreed set of binding principles that would determine the rights and responsibilities of companies and organised labour in respect of workplace activities and consequences, including wages and conditions of service.

The fundamental principles of the proposed compact would be sustainability through a partnership approach by the companies, the unions and employees.

Proposed wage increases and other terms and conditions of employment would be considered with due regard to their impact on the sustainability of the industry and on employment security.

Venkatakrishnan commented:

When you look at the wage negotiations this year and you look at the backdrop of what has happened [in the] platinum [industry], for example, [we saw] really unsustainable wage increases that [were] followed by job losses.

As a gold industry – excluding Gold Fields, as it has mechanised operations and is different to the other gold companies – our approach here is to say: Look at the totality taken into question here, and the compact, not just talks about the wage increase on one side, but … all the variables that we need to discuss … in terms of wage increases, in terms of what we provide to employees, in terms of productivity [and], importantly, job security, and the impact it has on jobs.

I am quite optimistic that sanity will prevail. Is it going to be an easy process? I don’t think so, but certainly, the dialogue has to start changing.

Click here to read the full Mining Weekly report.


Drill Tracker Weekly: East Africa Intersects High Grades in Oxide Gold Zone of VMS Deposit

Drill Tracker Weekly highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.

East Africa Metals (TSXV:EAM)

Price: $0.065

Market cap: $6.6 million

Cash estimate: $13.5 million (September 2014)

Project: Harvest

Country: Ethiopia

Ownership: 70 percent

Resources: 290,000 tonnes at 2.55 g/t gold, 10 g/t silver indicated; 398,000 tonnes at 4.77 g/t gold, 7.2 g/t silver inferred

Project status: Resource definition drilling

east africa

  • East Africa Metals announced reverse-circulation infill drilling results from the Terakimti deposit on its 70-percent-owned Harvest project in Ethiopia. The project was initially drilled in 2011 by Canaco, which through a series of transactions became Tigray before merging with East Africa in February 2014. China-based Sinotech currently owns 33.5 percent of East Africa.
  • Highlights from current near-surface infill drilling include 15 meters grading 12.36 g/t gold and 38.2 g/t silver starting at 28 meters depth and 19 meters of 6.87 g/t gold and 11.3 g/t silver from 16 meters. The current drilling is focused on delineating and expanding the near-surface oxide mineralization on 20-meter centers overlying the unoxidized massive sulfide mineralization (VMS).
  • An additional two holes that continued through a lower gold- and silver-rich “pyrite sand” zone and into the supergene-enriched massive sulfide intersected 4 meters grading 9.64 g/t gold and 1,151.9 g/t silver at a depth of 29 meters and 13 meters of 1.56 g/t gold, 292 g/t silver and 2.57 percent copper starting at 33 meters. Drill hole TRC018 also intersected the supergene zone with an interval of 33 meters grading 4.45 g/t gold, 1.42 percent copper and 6.3 g/t silver.
  • In January 2014, Tigray outlined an initial small oxide gold resource estimate. The indicated resource includes 290,000 tonnes at a grade of 2.55 g/t gold and 10 g/t silver, as well as an inferred resource of 398,000 tonnes of 4.77 g/t gold and 7.2 g/t silver. The current 4,000-meter reverse-circulation drill program at 20-by-20-meter spacing is currently 70 percent complete.

east africa 2

Discovery hole (Canaco, 2011): 52.1 meters at 1.55 g/t gold, 4.1 percent copper, 25.97 g/t silver

Current holes: 15 meters at 12.36 g/t gold, 38.2 g/t silver; 19 meters at 6.87 g/t gold, 11.3 g/t silver; 14 meters at 7.63 g/t gold, 4.8 g/t silver

 

Disclosure: I, Wayne Hewgill, certify that the information in this report is sourced through public documents that are believed to be reliable, but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. At the date of this release the author, Wayne Hewgill, owns no shares in the companies in this report.

This report makes not recommendations to buy sell or hold.

Wayne Hewgill is a geologist with extensive knowledge of the global mining industry gained through 30 years of diversified experience in mineral exploration and new business development in Canada, as well as 10 years living in Africa, New Zealand and Australia. He was previously senior research officer at BHP Billiton, an executive with an exploration company working in Argentina and a mining analyst at three Vancouver-based financial groups where he developed the Drill Tracker database in 2006. He holds a B.Sc. in Geology from the University of British Columbia and is registered as a Professional Geoscientist (P.Geo) with APEGBC.


At Least 25 Dead Following Central African Republic Mine Collapse

Reuters reported that at least 25 people are dead following the collapse of a gold mine in the Central African Republic. The mine is owned by Axmin Inc. (TSXV:AXM), but was taken over by rebels last year.

As quoted in the market news:

At least 27 artisanal miners were buried in the collapse of the mine on Thursday and 25 bodies have been retrieved, Ahmat Negat, the rebel group’s spokesman, said.

The mine collapse is the latest setback for the country, which has been beset by sectarian violence between the Seleka and Christian militia for over a year.

Click here to read the full Reuters report.


Perseus Mining Reports Busy Q2 at African Projects

Perseus Mining Ltd. (TSX:PRU,ASX:PRU) released its activities report for the second quarter of 2014, commenting that it drilled successfully at its Bokitsi South deposit, “advanced development planning” for its Sissingue gold project and “made significant operational improvements” at its Edikan gold mine.

Bokitsi and Edikan are in Ghana, while Sissingue is in Cote d’Ivoire.

Highlights include:

Edikan Operations

  • Operating efficiency at Edikan continued to improve during the Quarter, particularly in terms of gold recovery and mill run time (excluding down time caused by abnormal events);
  • Gold production totalled 42,543ozs, 86,330ozs and 180,519ozs for the Quarter, Half Year and full financial year respectively;
  • Production costs and all-in site costs were impacted by unscheduled processing downtime and repairs to fire damage and as a result, production and all-in site costs averaged US$1,150/oz and US$1,324/oz for the Quarter respectively;
  • 45,767ozs of gold were sold during the Quarter at an average sales price of US$1,333/oz;

Exploration – Edikan

  • High grade drill intercepts recorded from a 37 drill hole programme on the Bokitsi South deposit confirm the potential for high grade mill feed to be mined earlier than envisaged in the current Edikan Life of Mine Plan;

Development – Sissingué Gold Project, Côte d’Ivoire

  • Metallurgical test work and preliminary economic assessment of alternative project configurations and flow sheets has been completed and a selection of the preferred process route for detailed feasibility assessment is imminent

Click here to read the full Perseus Mining Ltd. (TSX:PRU,ASX:PRU) press release.


8 South African Gold Miners Shot

The Associated Press reported that South African police were searching for the killers of eight gold miners, who were found dead at an illegal shaft on the outskirts of Johannesburg.

According to the publication:

Illegal mining is common in South Africa, a major producer of gold and platinum. Workers brave unsafe conditions below ground amid reports of the involvement of organized crime and even clashes between rival groups seeking to extract precious metal from shafts.

Click here to view the full report. 


Barrick Gold Sells 13.5 Percent of African Barrick Holdings

Mineweb reported that Barrick Gold Corp. (TSX:ABX,NYSE:ABX) has sold 13.5 percent of its holdings in African Barrick Gold plc (LSE:ABG) to institutional investors. Previously, the company had tried to sell all of its African Barrick stake.

As quoted in the market news:

The disposal was conducted by means of a placement of 41 million ABG ordinary shares, representing 10% of the ordinary share capital of African Barrick and 13.5% of the parent company’s holding in ABG.

UBS, J.P. Morgan Securities and RBC Europe handled the sale. However, even after the sale, Barrick will still own 60% of ABG. In 2012 Barrick tried to sell the entire subsidiary to China National Gold Corp., but the two companies could not agree on price.

Click here to read the full Mineweb report.


Sibanye CEO Slams Illegal South African Gold Mining

In an interview with Mining Weekly, Neal Froneman, CEO of Sibanye Gold Ltd. (NYSE:SBGL), said that illegal gold mining has become such an issue in South Africa that it might be a good idea to let the South African National Defence Force handle it.

As quoted in the market news:

‘It’s literally war,’ said the highly regarded head of the JSE- and NYSE-listed Sibanye.

‘It’s at a level where I don’t think it would be inappropriate to bring in the SANDF. It’s way out of control,’ he said, recounting incidents of 150-plus illegal miners attacking plants.

Sibanye was having to spend R300-million on security, made up of former high-ranking Hawks.

The South African Police Services was unable to help because of their lack capacity to go underground.

Click here to read the full Mining Weekly report. 


Lost Gold Output Could Cost South Africa $35M a Day

Gold strikes starting this week in South Africa could cost the country $35 million a day, Nasdaq reports in a video.

As quoted by the market news:

After protests last week they were due to stage widespread strikes this week over pay – arguing their salaries haven’t kept up with inflation. Producers, squeezed by rising costs and falling prices, have offered 6.5%. But the hardline union AMCU wants a 150% increase and the main National Union of Mineworkers 60 percent.

Click here for the full video, as per Nasdaq


African Barrick Gold Could Close Tanzanian Mine

Frequent robberies and a proliferation of small arms in the Great Lakes region may lead African Barrick Gold (LSE:ABG) to close the Tulawaka Gold Mine, reported AllAfrica.com.

As quoted in the market news:

[Mr Philbert Rweyemamu, Tulawaka Gold Mine General Manager], noted that frequent armed robberies at the mine were a big concern leading the company to incur huge losses. “We have been experiencing an increase of armed robberies often disrupting operations of the company,” he said.

The General Manager disclosed that Tulawaka Gold Mine will soon wind up its operations and hand over to the State Mining Company (STAMICO).

Read the full news story on AllAfrica.com