Listed in the year 2008, small-cap gold exploration company, Bassari Resources Limited (ASX: BSR) intends to build on its successful exploration program in Senegal. Further, the company aims to develop numerous gold assets to become a major gold producer over the ensuing years.
The company’s senior management has had a long history of discovering and developing mining projects in Senegal. In addition to this, Senegal is also considered attractive for investment thanks to its democratic government, conducive security, access to excellent workforce and the government support for the development of the mining industry.
Transitioning into Producer
With an aim to become a major gold producer, Bassari Resources is focused on bringing into production the 4 high grade pits containing proven gold reserves confined within the one million-ounce Makabingui gold resource.
The company’s Makabingui Gold Project has a JORC Resource of 11.9 mt at 2.6g/t Au for 1,005,000 ounces contained gold (AMC 2012). The project has a high-grade Gold Reserve of 860 kt at 5.6 g/t Au for 174,375 ounces (4 open pits) with an annual production of around 50,000 ounces. The Project capital cost is around US$12 million (financed by Coris Bank).
In the past few months, the company has made significant development in bringing this project into production.
October Investor Presentation
The company on 22 October 2019 released an investor presentation, titled – “Makabingui Gold Project Toward Production and Expanding Gold Reserves”, bringing the stakeholders up to date with its project progress.
In the presentation, the company stated its investment highlights which include,
- Bassari’s highly prospective ground in West Africa’s Birimian Greenstone Belt;
- The Makabingui Gold Project which is well advanced;
- Second Gold Discovery – Konkouto Hill Project and Konkouto North Prospect.
Update on Makabingui Gold Project Development
The Makabingui Gold Project is well advanced. Bassari Resources has already constructed a 300,000 TPA plant, mining camp, water dam, roads etc. The company is now planning to complete the import of equipment to upgrade the plant. The upgrade process is well underway. In addition, the company has implemented a mining plan which involves the initial mining of the high-grade pits 1 and 2.
Meanwhile, the company has reinforced a development team by the making the following appointments.
- Andrew Goode (Project Manager)- He is working with the company’s Engineering Contractors, Mincore and with BSR’s Consultants, Mining Plus to bring the Makabingui gold project into production.
- Henry Cobbinah (Senior Mine Geologist) – He has more than 14 years’ experience in exploration and mining of gold and iron ore. Mr Cobbinah is a member of the Australasian Institute of Mining and Metallurgy (AusIMM).
- Anand Santha (Construction Manager)- A civil engineer with over 15 years’ experience in Africa, who has successfully executed projects in gold mining and oil & gas.
Along with the technical team, two government representatives- Roseline Carlos, Director of Mines & Geology, and Mouhamadou Moustapha Dia of the Finance Department, have been appointed to the Makabingui board to join the four Bassari appointed directors.
Bassari’s Other Projects
Besides Makabingui gold project, the company foresees much larger potential within the existing gold resource and Bassari’s land package over 60 km of strike. Bassari has an exploration permit covering the Moura permit containing highly prospective gold targets at 8 areas in the permit. Furthermore, previous Bassari drilling at Konkoutou Hill and Konkoutou North have shown significant potential.
Bassari’s Other Major Gold Permit – Moura Permit (Source: Company’s Reports)
After conducting a major review of all the company’s exploration work, Structural geologists of the UK, New Resources Management Services identified the company’s 12 main anomalies and classified the anomalies in approximate size order with Konkouto (Hill, North, West and East) in the Moura permit as the largest.
Bassari Resources is taking right steps to meet its objective of becoming a major gold producer in the coming times. The company intends to use the expected cash flow generated by its operations, supplemented by investors to - Convert more of the one million ounce gold resource at Makabingui into economic mineable reserves, and convert the new gold discoveries into economic mineable reserves wherever possible.
At market close on 22 October 2019, BSR stock was trading at a price of $0.016 with a market cap of around $37.56 million.