True Gold and Roxgold go for gold in Burkina Faso
by Greg Klein
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Formerly trading as Riverstone Resources TSXV:RVS, True Gold Mining TSXV:TGM continues to push its Karma project in Burkina Faso towards a scheduled year-end feasibility. On March 6 the company released yet another set of assays, this time from large-diameter metallurgical core.
True intercept widths on two deposits were estimated between 50% and 90%. Highlights for the Goulagou I deposit include:
- 2.22 grams per tonne gold over 22 metres
- 0.99 g/t over 24 metres
- 1.18 g/t over 16 metres
- 1.49 g/t over 12 metres
- 0.89 g/t over 14 metres
- 1.06 g/t over 10 metres.
The top-most interval began at a down-hole depth of 16 metres while the deepest stopped at 110 metres.
Highlights for the Goulagou II deposit include:
- 3.75 g/t over 56 metres
- 4.43 g/t over 24 metres
- 2.53 g/t over 22 metres
- 2.65 g/t over 14 metres
- 1.99 g/t over 14 metres
- 0.96 g/t over 28 metres
- 1.61 g/t over 16 metres.
The top-most intercept started at 28 metres, with the deepest stopping at 132 metres down hole.
Apart from the assays, the 16-hole, 1,370-metre program will provide metallurgical samples to support Karma’s feasibility study. In an August preliminary economic assessment, True Gold considered the prospects for an open pit operation with heap leach processing. Using a 5% discount rate, the study projected a pre-tax net present value of $271 million and a 47% internal rate of return. After taxes, the NPV came to $192 million with a 37% IRR. Initial capital costs were estimated at $125 million with payback in two years, but contract mining might shrink the capex to $96 million. Production was forecast at 70,000 to 90,000 gold ounces a year over a 10-year lifespan.
A resource update followed in October. Totals for Karma’s five deposits showed:
- an indicated category of 68.75 million tonnes averaging 1.02 g/t gold for 2.25 million gold ounces
- an inferred category of 40.4 million tonnes averaging 0.86 g/t for 1.11 million ounces.
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