Senegal- An Attractive country for Gold Exploration; Why Bassari chose Senegal?

Senegal is a relatively small country, approximately the size of Victoria (Australia), located in the north-west of Africa on the Atlantic coast. With its stable, democratically elected government and highly prospective geology, Senegal has established itself as an attractive country for exploration.

Why Senegal?
  • Stable Government– In the presidential election of 2019, Macky Sall was elected for a second term. It is interesting to note that he is serving as the president since 2012.
  • Highly prospective geology– The country had a substantial region of gold hosting Birimian rocks, which is just over the border in adjoining Mali, had produced multi-million-ounce gold deposits such as Sadiola and Loulou.

Prompted by the favorable prevailing conditions at Senegal, as mentioned above, several exploration companies including emerging gold explorer, Bassari Resources Limited (ASX: BSR) has chosen Senegal as their area of primary operations.

Incorporated and listed on the ASX in the year 2008, Bassari is a gold company which is currently focused on bringing its Makabingui Gold Project in Senegal into production this year. Bassari holds a positive view about Senegal and is impressed by its under-explored Birimian greenstone gold belt.

(Source: Company’s reports)

To read more about Bassari and its Makabingui Gold Project, Click here.

Senior Management’s History with Senegal

Bassari is betting upon the long history of its Senior management in discovering and developing mining projects in Senegal.

Let’s look at Bassari’s Board members and their Experience with Gold Exploration.

Alex Mackenzie – Bassari’s Executive Chairman Alex Mackenzie has around 40 years’ of experience in the Mining Industry in West Africa particularly in Senegal where he discovered the potential of the Sabodala Gold Mine, the $800 million Grande Cote Mineral Sand Project and the Bassari Makabingui Gold Project.

Peter Spivey – Bassari’s Non-Executive Director, Peter Spivey is a resident in Senegal and has worked in Africa over the last two decades developing the North Mara Mine in Tanzania, the Sabodala Mine in Senegal and the Kalsaka Mine in Burkina Faso.

Modou Diop Guene – CEO of Makabingui Gold Operation SA, Modou Diop Guene is a Chartered Accountant who is also the Administrator and Accountant of the Senegal Chamber of Mines.

Andrew Goode – Project Manager at Makabingui Gold Operation SA who has spent most of the past 23 years in Africa in a mining career spanning forty years.

Moussa Diba – Exploration Manager, Moussa Diba has over 20 years’ experience in gold exploration and mining with Anglo/Ashanti Gold; Iamgold/AGEM; Randgold Resources and Mineral Deposits Limited.

Bassari’s Operations in Senegal

Through its successful exploration program in Senegal, Bassari intends to develop its numerous gold assets, including Makabingui Gold Project, in order to become a major gold producer. Senegal government has already provided exploitation permit to Bassari for the Makabingui Gold Project and the Project is well advanced.

Development Progress at Makabingui Gold Project
  • Exploitation company, (MGO) formed in accordance with the Mining Regulations;
  • A project development fund finance loan of 7 Billion FCFA (USD12 million) provided by Coris International Bank is in place;
  • Procurement packages completed and paid for with the equipment shipments underway;
  • The pre-mining grade control drilling contract has been awarded to AMS Drilling with the drilling of pits 1 and 2 in progress;
  • Fencing of the mine area is nearly completed;
  • Setting out of access roads to the Douta plant site to reflect the layout design required for Makabingui ore processing operations;
  • Repaired river crossing near Sambarabougou village to give all weather access to the village and Makabingui mine site;
  • Completed repairs to some culverts at water crossings on the haul road from the Makabingui mine site;
  • Established important contracts with various service providers in Senegal (plant equipment, fuel suppliers, sewage plant suppliers, security, fencing, building products including cement, aggregate, sand, re-inforcing bar etc.);
  • Other important contracts are in the process of negotiation and finalization, including the mining, the gold refining etc.

During the last quarter, the company conducted several key activities at the Project which include major equipment purchases, upgrades to the medical clinic and the workshop area, extension of the mess facility, increasing the housing capacity at camp by the construction of new quarters. This quarter, the company expects to incur a cash expenditure of around $1.5 million on development activities.

As on 14 November 2019, BSR stock was trading at a price of $0.014 with a market cap of around $32.86 million and outstanding shares of ~2.35 billion.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.

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