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Over the past few months, Melbourne â based West African gold developer Bassari Resources Limited (ASX: BSR) has made significant progress concerning the development of its high-grade Makabingui Gold Project located in Senegal, West Africa. The company is now on the verge of starting mining and production at this project.
Time and again, the company has stated that it aims to bring the Makabingui Gold Project into production this year with the intention to transition itself into a gold producer. With only one month left of 2019, the shareholdersâ excitement is at its peak.
If everything goes as per plan and Bassari can mine high-grade proven reserves of 200,000 ounces within the one-million-ounce resource of the Makabingui deposit, the company could generate substantial cash flow and profit over a reasonably short period. This is the reason why any progress in the development of Makabingui project is closely monitored by the shareholders.
Recently on 29 November, the company received tenders for the multi-million-dollar production fuel supply and is now reviewing these tenders.
On 3 December 2019, the company reported on significant progress it made during the November month, to take Makabingui close to the production stage. As per the announcement, till now the company has completed the mine perimeter fence and has cleared the main pit areas with both starter Pits 1 and 2 completed.
On the Grade Control Drilling front, the company informed that till 29 November 2019, 228 holes have been drilled totaling 5,325 metres. 3,327 samples from these holes have been sent to Actlabs for assay, of which assay results for 1,894 samples have been received to date, with 1,433 assay results still pending.
The most significant gold intersections returned till now include:
- 8m at 5.2 g/t Au from 31m
- 13m at 2.9 g/t Au from 0m
- 6m at 6.1 g/t Au from 29m
- 4m at 7.5 g/t Au from 16m
- 13m at 2.2 g/t Au from 23m
- 6m at 4.4 g/t Au from 23m
- 11m at 2.3 g/t Au from 15m
Importantly, the results also confirmed the continuity of the mineralisation between the drilled lines and extending the pit to the west and at depth.
With the help of the project finance, which was organised with Coris International Bank of Senegal, the company has purchased key processing equipment items which includes equipment, such as, the sewerage treatment plant, agitators and weightometer. The important 60 T crane purchased in the USA has arrived in the port of Dakar, along with the plant compressor units and the 194 ton filled containers carrying the two ball mills and their ancillary equipment from China is scheduled to arrive by the end of December.
While providing the update on camp construction, the company informed that the second senior staff accommodation block is now operational, and the sewerage treatment tanks have been installed. Further, the company has expanded the Camp accommodation to 172 persons from 114, enabling staff levels to be increased from 60 to 163, made up of 98 permanents and contractual, 4 expats, 21 kitchens and 40 security. The communication tower has been installed and a powerful repeater is in the process of installation.
Below is the image of the companyâs new accommodation block.
New accommodation block (Source: Company reports)
To maintain a good relationship with the community, the company has agreed to donate USD 1,700 to support school supplies for all the villages around its mining camp. In addition, the companyâs medical clinic staff were involved in 40 medical consultations for local villagers over a two-week period with 10 cases of malaria being treated.
With the development works at Makabingui Project going on full swing, the company is now very close to becoming a gold producer.
On 4 December 2019, BSR stock was trading at a price of $0.016, with a market cap of $39.9 million. In the past 5 days the stock has appreciated by over 20%.
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