Australia based gold company, Bassari Resources Limited (ASX: BSR) is currently focused on the development of the Makabingui Gold Project and exploration and resource definition within two permit areas located in Senegal – Moura and Makabingu. The company intends to commence production and delineate additional mineral (primarily gold) deposits that meet commercial parameters of grade and tonnage needed for profitable exploitation.
Highlights of Makabingui Gold Project
- Located in Senegal, an attractive gold exploration country with a stable, democratically elected government and highly prospective geology;
- Well located tenements in a +60 million ounce gold province hosting world class deposits
- Hosts a Mineral Resource, which comprises 11.9 million tonnes averaging 2.6 g/t Au for a contained 1 million ounces of gold classified into the Indicated and Inferred Resource categories, with 158,000 ounces classified as reserves;
- Open Pit Feasibility Study for the initial open pit mining phase delivered outstanding results:
Multiple prospects identified along 60km of partially drilled mineralised strike.
The company recently published its half-year results report, in which it provided update related to the Makabingui Gold Project as well as on the Moura exploration.
Makabingui Gold Project
Currently, the Makabingui Gold Project is in the development phase. Bassari Resources is rapidly progressing to bring the Makabingui Gold Project into production. During the first half of 2019, the company made significant progress in the development of this project. This includes:
- Project Funding– In January 2019, the company received project funding from Coris International Bank – Senegal, the project loan financier. As at 30 June 2019, the company had withdrawn a project fund of around $7.7 million.
- Equipment Purchases- The project financing aided the company to place significant equipment orders. Over the half-year, the company purchased Ball Mill, tertiary crusher, agitators, cyclones, screens, air compressors, furnace and calcine ovens, magnets and metal detectors, elution, electrowinning, heaters and kilns, bolted CIL tanks and welded tanks, 60T mobile crane and fabricated steelworks.
(Source: Company Reports)
- Mine Plan– During the period, new mine design was completed. The design included the finalising of the block modelling, pit optimisation, mine design and mine scheduling. The new mine design is recommending the company to commence mining with starter pit two followed by pit one in preference to the original plan of a large open pit one, two, three and four.
- Grade Control Drilling – The first pass grade control drill hole planning according to the new starter pits design was completed. The plan was to begin grade control drilling in August on a 10M x 10M pattern then reduce to a 10M x 5M pattern for evaluation. The company has already selected the drilling contractor and has finalised the contract.
- Mine Site Preparation and Mine Layout- Clearing of the mine permit boundary fence has been completed with the fencing 90% complete. The company finalised the mine ROM pad and mine waste dump locations and has also completed the haul road from the ROM pad to the channel. In addition, important dam repairs have been completed.
- Accommodation and Access Roads- During the half-year period, the company completed security accommodation for the 30-man security team. The company is now focusing on increasing the current 120-person capacity at the Douta camp by a further 20 places. The company also intends to upgrade and increase the kitchen and laundry capacity. During the period, the company also completed the works on the development of the mine access road to the Douta village after getting approval by the Douta villagers.
- Plant and processing facilities construction – The company has completed the clearing of the tailings dam storage facility. The contractor for partial dismantling of gravity circuit has been agreed, with a purchase order placed for these works and Power load estimations for the camp and processing plant generators have been finalised to allow purchase orders to be prepared.
With regards to the Moura exploration, the company has informed that a drilling program has been designed to follow up mid-2018 drilling results with the aim of defining preliminary resource estimates at both Konkouto and Konkouto Hill prospects. Programs designed include 1,000 metres of diamond drilling and 3,500 metres of reverse circulation drilling.
For the half-year period ended 30 June 2019, Bassari Resources reported a loss of $941,000 and basic and diluted loss per share of 0.04 cents. At the end of the half-year, the company had current assets of $629k, significantly higher than $186k reported at the beginning of the year, and the current liabilities stood at $11.33 million. By the end of half-year, the company had total equity of $57.28 million.
During the year, the company paid $1.34 million of cash to suppliers and employees as payments, taking the total net cash used in operating activities over the half-year period to $1.34 million.
During the half-year, the company paid $3.86 million as payments for capitalised exploration, evaluation and development expenditure and $2.29 million as payments for purchase of property, plant and equipment. Further, the company received $7.84 million as proceeds from borrowings. Cash and cash equivalents at end of the half-year period was $521k.
Recently in September 2019, the company issued 15,928,573 ordinary shares at $0.014 (1.4 cents) per share, raising $223,000 for additional working capital.
On 17 September 2019, BSR’s stock was trading at a price of $0.015, up 7.143% as compared to its previous closing price (As at AEST: 2:08 PM). The market capitalisation of BSR stands at circa $32.25 million.
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