Bassaris’ Makabingui Gold Project Moving Toward Production; A Quick update on Recent Developments

Melbourne-based West African gold developer Bassari Resources Limited (ASX: BSR) is focused on discovering and developing multi-million-ounce gold deposits in the Birimian Gold Belt, Senegal, West Africa.

Highly Prospective Ground in West Africa’s Birimian Greenstone Belt

• Geology – Kedougou-Kenieba Inlier endowed with +60 Moz of gold
• Country - Senegal, politically stable and pro-mining
• Permits - Significant exploitation and exploration package
• Proximity - Close to large scale operating gold mine – Sabodala (~4.5 Mtpa)

Currently trading with a market cap of around $30.51 million (as on 22 November 2019), Bassari Resources aims to build on its successful exploration program in Senegal to develop its numerous gold assets in order to transition into a significant gold producer.

During 2019, the company’s efforts are emphasised on bringing into production the four high-grade pits within the one million-ounce Makabingui gold resource in Senegal, West Africa. The company intends to meet this objective by upgrading the existing processing plant, camp and infrastructure.

Makabingui Gold Project-Review

• JORC Resource of 11.9 mt at 2.6g/t Au for 1,005,000 ounces contained gold (AMC 2012)
• Focus on High-Grade Gold Reserve of 860 kt at 5.6 g/t Au for 174 375 ounces (4 open pits)
• Annual Gold Production: 50,000 ounces
• High-grade Gold (5.6 g/t)
• Very high gold recovery (95%)
• Project Capital Cost: approx US$12 million (financed by Coris Bank)
• Employment: 250-300 workers

In line with its objective, Bassari has made significant progress to bring Makabingui Gold Project into production.

Development Progress at Makabingui Gold Project

• Exploitation permit granted by the Senegal Government
• 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
• Project manager and construction manager appointed to implement the upgrade as planned by the Bassari mining consultants, Mincore of Australia
• 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
• Other important contracts are in the process of negotiation and finalisation including the mining, the gold refining etc
• Setting out of access roads to the Douta plant site to reflect the layout design required for Makabingui ore processing operations
• River crossing near Sambarabougou village is repaired, establishing an all-weather access to the village and Makabingui mine site
• Fencing of the mine area is nearly completed
• Repairs to some culverts at water crossings on the haul road from the Makabingui mine site completed
• Important contracts with various service providers established in Senegal (plant equipment, fuel suppliers, sewage plant suppliers, security, fencing, building products including cement, aggregate, sand, re-inforcing bar etc)
• Numerous works have been undertaken and completed including upgrades to the medical clinic, extension of the mess facility, increasing the housing capacity at camp by the construction of new quarters, and the ramp-up of workshop area
• During September quarter, Bassari withdrew $2.74 million of project finance and made additional equipment purchases.

(Source: Company Reports)

Two independent feasibility studies on the Makabingui deposit has concluded that if Bassari mined the high-grade proven reserves of 200,000 ounces within the one-million-ounce resource, the company could generate substantial cash flow and profit over a reasonably short period. With the cash flow generated by new investors and banks, the company is planning a substantial drilling program to expand its gold resources and reserves significantly. It is to be noted that a UK structural geology consulting company reviewed all Bassari’s targets and listed six anomalous regions as potentially larger deposits than the million ounces at Makabingui.

At market close on 22 November 2019, BSR stock was trading at a price of $0.014 with a market cap of ~$30.51 million.

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