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Algold Resources Ltd.

TSXV:ALG

Exploring District-scale Gold Potential in Mauritania

Press Releases

Overview

Algold Resources Ltd. (TSXV:ALG) is an advanced-stage gold exploration and development company focused on building a strategic portfolio of properties in West Africa. The company holds a portfolio of three highly prospective properties in Mauritania, including the wholly-owned Tijirit Project. The Mauritanian government granted Algold a 30-year mining license for Tijirit in June 2017.

The Tijirit Project lies 25 kilometers southeast of Kinross’ world-class Tasiast gold mine, which produced 175,176 ounces of gold in 2016. Algold is undertaking a mutli-phase exploration program totaling more than 45,000 meters targeting the high-grade gold deposit at Tijirit.

In February 2018, Algold released an updated resource estimate, which showed an inferred resource of 648,790 ounces with a grade of 1.92 g/t gold and a measured and indicated resource of 169,450 ounces with a grade of 1.64 g/t gold.

Algold released their preliminary economic study (PEA) for their Tijirit property in May 2018. The PEA displayed an after-tax NVP of $69 million and an after-tax IRR of 23.5 percent. The PEA was conducted with an open pit mine plan and an onsite mill. Mining will take place in two phases. Phase I is expected to produce 1,018 million tonnes per year for four years with an average annual production rate of 104,500 ounces of gold, while Phase II is expected to produce 1,642 million tonnes per year for three years with an average annual production rate of 53,000 ounces of gold. The mill should be able to process approximately 2,976 tonnes per day for Phase I and 4,500 tonnes per day for Phase II.

In December 2017, Algold completed a financing with gross proceeds of totaling $1.16 million. Algold also holds interest a 90 percent interest in the Kneivissat and a 51 percent interest in the Legouessi exploration licenses.

Algold Resources is led by an experienced team of mining and finance professionals with a long track record of success, especially in West Africa. “I believe we have a great team that can really deliver to our shareholders,” stated Auclair. “Many of the people on our management team and on the board have been involved in the development and operation of major mines.” Auclair himself was formerly the General Manager at Tasiast in the early stages of development.

Chairman Benoit La Salle is the founder of SEMAFO (TSX:SMF), a gold producer in West Africa. La Salle was instrumental in bringing SEMAFO from junior explorer to a more than 250,000 ounce-per-year gold producer with up to three mines in operation in the region when he was the CEO.

Company Highlights

  • More than 4,000-square kilometer land package in excellent jurisdiction with mining-friendly government, infrastructure and huge upside potential.
  • Tijirit best intersects include 0.9 g/t and 44.02 g/t gold at the Eleanor Prospect, 10.47 g/t and 9.63 g/t gold at the Sophie Prospect and 1.16 g/t and 20.90 g/t gold at the Lily Prospect.
  • 30-year mining license at Tijirit.
  • 2018 updated resource estimate with an inferred resource of 648,790 ounces with a grade of 1.92 g/t gold and a measured and indicated resource of 169,450 ounces with a grade of 1.64 g/t gold.
  • 2018 PEA shows an after-tax NVP of $69 million and an after-tax IRR of 23.5 percent.
  • Experienced management team and board including former founders, builders and operators of SEMAFO, Afcan, Rio Narcea, and the first general manager of the Tasiast mine.
  • Strong shareholder base including AngloGoldAshanti (NYSE:AU), Franco Nevada (NYSE:FNV) and Village Main Reef (JSE:VIL) which collectively hold with management approximately 20 percent of the company.
  • Kneivissat and Legouessi offer additional shareholder value with proximity to Tasiast gold mine in the Aouéouat Archean Greenstone Belt.
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