Modern Mining July 2016

MINING News

Drilling enhances prospects for Fekola and Kiaka similar to the Fekola deposit, as well as significant zones of saprolite-hosted gold mineralisation. In addition, deeper drilling below the Fekola deposit returned posi- tive results that indicate the potential for underground mining in the future.

Technical review of Orezone’s Bomboré project completed According to B2Gold, the significance of the latest positive drill results (as well as 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 mineralisation Canada’s B2Gold Corp has provided an exploration update for its Fekola and Kiaka projects in West Africa (Mali and Burkina Faso, respectively). Highlights of the new drill results include 15,50 m at 8,49 g/t gold from a diamond drill hole north of the Fekola deposit; 26 m at 5,44 g/t gold from reverse circulation drilling in a new zone of sap- rolite-hosted gold mineralisation, also in the Fekola area; and 16 m at 4,16 g/t gold, including 6 m at 9,90 g/t gold, intersected in a new target area during the reconnais- sance aircore drilling programme in the Kiaka area.

drill results at the new Toega prospects near the Kiaka deposit indicate the pres- ence 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 programme is intended to further explore and conduct infill drilling at the new, higher-grade gold zones along with metallurgical testing and base line permit- ting 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, B2Gold’s exploration budget for West Africa has been increased by US$5,5 million, from US$9,8 million to approximately US$15 million. The 2016 exploration budget at the Fekola and Kiaka projects is now US$11,4 million and US$3,6 million, respectively. 

Based on the exploration potential and success to date, the company is construct- ing the Fekola mine with a +25 % design factor. This means that the throughput of ore at Fekola could reach up to 5 Mt/a in the initial years of production, beyond the optimised feasibility study’s estimated throughput of 4 Mt/a. This increase may only require approximately US$15 mil- lion to US$20 million of additional capital expenditure and could potentially increase annual production by up to 20 % (subject to final mine planning), surpassing ini- tial projections of approximately 350 000 ounces of gold per year. To date at the

Kiaka project, the positive exploration

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Orezone Gold Corporation, listed on the TSX-V, has suc- cessfully completed a presentation and critical technical review of its Bomboré gold project with the Burkina Faso National Commission of Mines (NCM). The NCM reviewed the project’s feasibility study, including an environmental assessment and impact study, and a relocation action plan. The company says it has now fulfilled all the conditions set by the NCM and was advised that the NCM will issue a favourable and binding opinion with respect to the com- pany’s application for a commercial mining permit. This is the last step in the permitting process before a final decision can be made by the Council of Ministers and decreed by the Government (at a full cabinet session) to grant a mining permit, which is expected during the third quarter of 2016. Orezone owns a 100 % interest in Bomboré, which it describes as “the largest undeveloped oxide gold deposit inWest Africa”. It is situated 85 km east of the capital city and adjacent to an international highway. A full Feasibility Study was completed in April 2015 for an open-pit, combined heap leach and CIL operation without grinding or cement agglomeration with 87 % recovery. Orezone says that construction of the mine could be completed as early as 2018 subject to a US$250 million full project financing. With a production profile of 135 000 oz/a for the first eight years, all in sustaining costs are estimated to be US$678/oz with a 2,7 year payback and a 24 % after- tax IRR using a US$1 250 gold price. The project also benefits from a large underlying sul- phide orebody that has been drilled and studied and could be developed as part of a second phase plant expan- sion at higher gold prices to increase production to over 200 000 oz/a for many more years. 

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July 2016  MODERN MINING  15