INTRODUCTION

MASI operates its gold mining concessions through its subsidiary, “Mingo Gold”.  Mingo Gold (MG) is organized under Senegalese law (registration number SN-DKR-2013-B-17644) and structured similarly to a US LLC.  Mingo Gold holds its own individual Exploration, Prospection Authorization and Permit. The company’s five mining concessions consist of the “Seekoto Benkanto” Concession, the” Sining Kang” concession, the Bencoutou Concession, the Book Voon Concession and the Diakha Gold and Diamond Mine Concession.  MASI has tentative agreements for additional concessions to be signed in the very near future and mining expansion plans in the DRC, Liberia and Guinea.

PROPERTY DESCRIPTION & LOCATION

The Seekoto Benkanto, Bencoutou, Sining Kang and Book Voon Mining Concessions are located in the Southeastern corner of Senegal in the Kedougou Region. The concessions are 20 kilometers north of the city of Kedougou. Both concessions are located side by side, separated by 50 meters as depicted on the map below. (Figure 2.1)  Each Concession measures 50 hectares each. Access to the property is gained using a dirt road at kilometer marker 17 of the major road way N-7.  N-7 is a major road that runs from the Capital City or Dakar to the City of Kedougou and accesses into Mali.  The Benkanto and Sining Kang Mines are located 3 kilometers east of N-7. The Diakha Gold and Diamond Mine is located in the eastern region of Kedougou, accessible by dirt road from Ntional highway 7 some 10 km fro the village of Bousankhoba.

Tenure History

Seekoto Benkanto GIE, (Group Interest Economic) applied for and was granted GIE status on October 10, 2008 under registration number SNBTC 2008 C 594. A GIE is similar to an LLC in the US but with less protections. Seekot Benkanto applied for and was granted a Gold Mining Concession from the Director of Mines and Geology on January 22, 2010. Seekoto Benkanto GIE and MASI signed a Joint Venture Agreement on March 26, 2013 giving MASI the exclusive rights to Mining Concessions under the Senegalese Mining Code.

Sining Kang GIE (Group Interest Economic) applied for and was granted GIE status on November 24th, 2008 under registration number SNTBC 2008 C 668.  The Sining Kang GIE (Group Interest Economic) applied for and was granted a Gold Mining Concession from the Director of Mines and Geology on January 25th, 2010. Sining Kang and MASI signed a Joint Venture Agreement on April 30th, 2013, giving MASI the exclusive rights to the Mining Concessions under Senegalese Mining Code.

Bencoutou GIE, (Group Interest Economic) applied for and was granted GIE status on October 10, 2008 under registration number SNBTC. A GIE is similar to an LLC in the US but with less protection. Bencoutou applied for and was granted a Gold Mining Concession from the Director of Mines and Geology on January 22, 2010. The Bencoutou GIE and MASI signed a Joint Venture Agreement on March 21, 2014 giving MASI the exclusive rights to the Mining Concessions under the Senegalese Mining Code.

The Diakha Gold and Diamond Mine applied for and was granted was granted a concession license on July 29th 2010, registration number 06899/MMIAPME/DMG.  MASI and Diakha signed a Joint Venture agreement giving MASI the exclusive rights to the Mining Concession under the Senegalese Mining Code on March 9th, 2015.

Royalties

Under the JV agreement between MASI and Seekoto Benkanto GIE, MASI agrees to pay Seekoto Benkanto 25% of the total NET profits from the gold sales generated from the project.

Under the JV agreement between MASI and Sining Kang GIE, MASI agrees to pay Sining Kang 25% of the total NET profits from the gold sales generated from the project.

Under the JV agreement between MASI and Bencoutou GIE, MASI agrees to pay Sining Kang 25% of the total NET profits from the gold sales generated from the Project.

Under the JV agreement between MASI and Book Voon GIE MASI agrees to pay Book Boon 25% of the total NET profits from the gold sales generated from the Project.

Under the JV agreement between MASI and Diakha Gold and Diamond Mine, MASI agrees to Diakha 25% of the toral NET profits from the gold and diamond sales generated from the project.

Taxes

The Ministry of Mines and Geology assesses an annual mining fee of 3% of the market value of gold production tile-mine based on the average price of an ounce of gold on the London Gold Fixing during the year. Under the JV agreement with Seekoto Benkanto, Sining Kang, Bencoutou and Book Voon, MASI agrees to pay l.5% of the fee and Seekoto Benkanto, Sining Kang, Bencoutou and Book Voon agrees to pay 1.5% of the fee Under the JV agreement with Diakha Gold Mine, MASI agrees to pay 1.5% of the fee and Diakha Gold Mine agrees to pay 1.5% of the fee.

Tenure

The mining license and authorizations are renewable every three years up to the exhaustion of the reserves if the beneficiary has respected its obligations and fulfilled its commitments within the frame work of the so called authorization of exploitation and has duly applied for it each time.

Surface Rights

Article 73 of the Senegalese mining code states, subject to the respect of specific legislative clauses applicable to each of the following cases hereafter indicated, the holding of a mining title confers a right of occupation within the entire Territory of the Republic of Senegal.

This right of occupation entails, inside and outside the perimeter attributed, the authorization to:

  • Occupy the lands necessary to carry out exploration and exploitation works and related activities as well as building housing for the staff working in the site.
  • Carry out or make carry out the infrastructure works necessary to the realization , in normal economic condition and according to the book operations related to exploration and exploitation notably to transport of supplies, materials equipment and extracted products.
  • Carry out the soundings and the works requited for water supply to the staff, the operations and the installations.
  • Search for and extract building materials and metals or viability necessary for the operations.
  • Cut necessary wood for works.
  • Use for its works unused or reserved waterfalls.

The works listed hereafter are considered to be part of the exploration and exploitation works;

  • The preparation, the washing, the concentration, the mechanic, metallurgic, chemical or metallurgic processing of extracted mineral substances, the compressing, the carbonization, the distillation of combustibles.
  • The stocking and the dumping of products and wastes.
  • The constructions destined to housing, hygiene and medical care of the workers.
  • The establishing of all communication means, notably the roads, railways, canals, pipes, escort ships/security guards, air transport, ports and telecommunication networks.
  • The setting up of limits and boundary markers.
  • Setting up and exploitation of electric power station, post, lines and telecommunication networks.

Water Access

Access to the mining site is gained from the Gambian river which is located 2.8 kilometers east of our mine sites. Article 73 of the Senegalese Mining Code gives holders of mining titles the right to extract water from the river.

Customs Exemptions

Article 59 of the Senegalese Mining Code states; the holder of an exploration permit for mineral substances is exempt from all royalties and custom duties included value-added tax (TVA) and the deductions of the Senegalese Council Shippers (COSEC) for:

  • The materials, building materials, supplies, machines, engines and equipment, commercial vehicles includes in the approved program, as well as spare parts and consumable products and materials not produced nor made in Senegal, destined specifically and definitively to mining research, operations and of which the importation is indispensable for the realization of the research program.
  • The fuels and lubricants supplying the fixed installations, drilling materials, machines and other equipment destined to exploration operations on the attributed permit.
  • The petroleum products used to produce energy for the realization of the exploration program.
  • The parts and the spare parts destined to recognized machines and equipment destined specifically to the realization of the approved research program.
  • The subcontractor companies including the geo servicing companies such as the companies for drilling geophysics, analyses and chemical test intervening in the realization of the approved mining exploration works program, with the approval of the Minister in charge of mines benefit from the royalties and custom taxes for the realization of their services.

GEOLOGICAL SETTING

Our sites are located within the boundaries of a wide corridor of deformation, birimian, which are parallel to that of the Sabodala deep fault zones. The Interior of this corridor are developed like shears-areas, which are made up of veins and veins of quartz of different sizes and directions. The perimeter of Tinkoto Sou, occupies an area laterite eluvionnaire, where you can watch pieces and blocks of veins as well as veins dismantled and decayed. The Mineralogical study, performed on this ore by PASMI (Mining Sector Support Program) for gold panning and the Director of Mines and Geology Laboratory (Senegal), had enabled our company to obtain the following results. The gold ore we have is of a grayish, bluish to brownish nature. The eye is composed mainly of quartz, plagioclase, chlorite, oxides, iron hydroxides and carbonates.

The content of total gold for the sample analyzed is 4.82 g/t, while that of the different fractions, varies between 1.99 and 15,22 g/t; (See Figure 4.0.A & 4.0.B). Crushing and quartz ore spraying occurred without noticeable strain. Although the quartz is generally hard and abrasive, the development of systems of cracks (micro-tectonic) in the ore, significantly reduces grinding efforts. The gold quality and weight is 22/ 23 carats. The substratum of the Senegalese territory is made up of two major geological domains: the Sedimentary Basin, which occupies more than 75% of the territory, and the Precambrian basement, representing the country’s south east.

SEDIMENTARY BASIN

The Senegal Basin occupies the central part of the Northwest African Coastal Basin (MSGBC Basin), which extends from the Reguibat ridge at the north end of the Guinean fault. It is typical passive margin opening westward to the Atlantic Ocean and whose eastern limit is represented by the Mauritanides chains. The Senegal Sedimentary Basin is a Mesozoic Basin. It has gone through a complex history in relation to the pre-rift (Upper Proterozoic to Paleozoic), the Syn-rift (Permian to Triassic) and the Post-rift (Central Jurassic to Holocene) at different stages of development of the Basin. Most of the outcrops of the basin are composed of recent sandy covers. Maestrichian and Eocene formations outcrop, however, in the peninsula of Cape Verde while Eocene outcrop in the valley of Senegal River. The description and knowledge of the Basin have been made possible largely thanks to hydraulic and oil drilling data. The Secondary formations include Palaeocene zoogenic limestone exploited at Bandia and Pout by cement plants and aggregates producers. They include also Maestrichian sands, clays and sandstones. Paleocene and Maestrichian formations are also known to be major aquifers that contribute significantly to the water supply for cities and villages in the basin. Tertiary formations hold into the Eocene compartment, significant resources of phosphates, limestone, attapulgite, clay and ceramics, solid fuels, etc. A major part of the basin is covered with superficial Quaternary formations, which in the middle and recent parts are characterized by fixed red sand dunes, semi-fixed or alive yellow and white dunes. These dunes, are often exploited as building materials around urban centers and also constitute important reservoirs of heavy minerals.

PRECAMBRIAN BASEMENT

The Precambrian basement formations are constituted at the west by the Mauritanides range bordering the eastern part of the Sedimentary Basin and in the east by the Palaeoproterozoic volcano-sedimentary sequences of the Kedougou- Kenieba inlier. The formations of the Mauritanides chain are Herycian age and constitute one of the mobile areas of the West African craton. They are known for their numerous copper and chromium occurrences which in Mauritania, constitute the important copper deposits of the Akjout Region. The Palaeoproterozoic volcano-sedimentary sequences, mostly known as Birimian formations, are of great metallogenic importance, as far as they contain the major ore deposits discovered in the region. The Kedougou-Kenieba inlier is limited to the west by the Mauritanides chain, and on all other sides by the Upper Proterozoic and Cambrian sediments of the Basin of Taoudenni. The Kedougou-Kenieba inlier is interpreted as an accretion of north-easterly trending Birimian age volcanic terrains. It includes two major geological structures, the Senegal-omalian Fault and the Main Trans-current Zone (MTZ) to which gold mineralization is associated. Recent combination of geological studies including field work, and structural modelling, of detailed core logging have improved the understanding of the geological structure of the MTZ. Two main zones of mineralization have been further refined based on the latest geological model. Geological studies suggest that mineralization in the prospective Sabodala volcano-sedimentary belt and the Senegal-Malian shear zone is associated with an altered and sulphidised gabbro, which has intruded along the main structure, and a typical shear zone hosted, where a structure has developed at the contact between a package of volcaniclastics and sediments. A lapilli tuff acts as a prominent marker horizon in the hangingwall of mineralisation. The inlier is divided into three main stratigraphic units from west to east: the Mako Super group, the Diale Super group and the Daléma Super group.

  • The Mako super group hosts Sabodala deposits located in an area of intense shearing and silicification associated with pyrite gold mineralization. It forms a north-east tectonic structure, turning to north-west near the border with Mali, in the north. Typical lithologies include basalt flows; often carbonate alterations and minor volcaniclastic intercalations, magnesium basalt or komatiites, ultramafic sub-volcanic intrusions (pyroxenites) and numerous massive biotite and amphibole granitoids. These granitoid intrusions are suspected to have been ‘heat engines’ which sparked off the deep mineralized magmatic fluids related to the belated mineralisation in the Kédougou-Kéniéba inlier.
  • The Diale Super group, located between the Mako Super group and the western edge of the Saraya granite is weakly metamorphic. It includes extensively folded formations, deposited after those of the Mako Super group and consisting of shale, greywacke, quartzite and volcano détritic rocks.
  • The Dalema Super group, located between the Saraya granite and the Faleme river, continues to Mali in its eastern part but disappears in the South under the Segou Madina Kouta the series. It is composed of volcano-sedimentary schist and grauwacke rocks. These Birimian formations are affected by syn, late and post-tectonic granite intrusions.

senegalThe Precambrian basement is a metallogenic province of major importance for Senegal, which hosts numerous deposits and anomalies of gold, iron, uranium, lithium, tin, molybdenum and nickel in Birimian formations, and copper and chromium in the Mauritanides range. In addition to these metal resources, there are large marble and other ornamental rocks deposits, but also non metallic indices and deposits of barytes, kaolin.

fig4-dNational mineral database

Under PASMI (from April 2007 to December 2008) the government created a Mineral Documentation and Mining Cadastre Centre (CDCM). The project helped set up an archive center for the mining industry and reinforce Senegal’s capacity to implement a mineral title management system using a new mining cadastre. Since the official inauguration on December 17, 2008, the cadastre has operated efficiently. The project also helped implement a geographical information system for data management of the country’s mineral resources, and a survey was successfully carried out to approve basic norms of environmental management for mining operations.

Geological Mapping: Sedimentary Basin

carteThe Senegal Basin is the central part of the Mauritania-Senegal-Gambia-Bissau-Conarky (MSGBC) basin which stretches from Mauritania to Guinea Bissau along the coast of West Africa. Under the EU funded PASMI, the government of Senegal is presently undergoing detailed geological mapping of this basin. This mapping project aims to produce a standard print-on-demand geological map of this geologically complex and highly prospective Palaeozoic basin. Maps will be available in 1:500,000 for the whole basin, in 1:200,000 for the northern part and for the Cap Vert peninsula, in 1:50,000 multi-layers map sheets for the west of the meridian 16°40’W and in 1:20,000 multilayers map sheets for the west of the meridian 17°10’W. Midway reports indicate many significant changes and enhancements to the understanding of local and regional geology. This very ambitious geological mapping program, from data collection to providing several final deliverable map quadrangles, will take about 24 months and is scheduled to deliver final products by end-March 2009.

sensgal1Geological Mapping: SE Senegal

This important project started in May 2008, and aims to update, through a geographical information system, the geologic and metalogenic cartography of south-eastern Senegal (last updated in 1960). This revision will take into account the numerous and important data accumulated through mineral exploration programs and works carried out by researchers and academics since then. At the end of the project in 2010, geological and structural maps will be available in a 1:200,000 map sheet covering the whole Precambrian basement, and in 1:500,000 metalrgenic map sheet for the same terrains. These maps to which will be annexed the explanatory notes will be of a certain contribution for the mining exploration of south-eastern Senegal.

Artisanal Mining

This project focuses on gold artisanal miners in the Kedougou region. With government support, the project provides direct support to artisanal miners, particularly to the more vulnerable children, women and elderly. This project aims to integrate artisanal miners into the formalized mining sector, to improve techniques and livelihoods of artisanal miners.

Mineral Resource & Mineral Reserve Estimates

Mine Life Estimates

The Seekoto Benkanto, Bencoutou and Sining Kang mining concessions have a combine mining area of 50 hectares each. This is equivalent to 375 acres of mining area. The depth permitted under the mining permit is 15 meters or 49 feet. The area and depth are extendable under the Mining Code depending on the reserves and monetary commitment of the holder of the concession title.  Figure 5.0.1 provides an estimate of the ore reserves and mine life as determined by the size of the mining perimeter.

Acre143,560Square Feet  
M/Depth1550Feet
Cubic Yards80666
Cubic Yards80666124Acres10,002,584.00Cubic Yards
Cubic Yards11.5
Cubic Yards10,002,584.001.515,003,876.00Tons
Tons15,003,876.00312,000Tons48.08934615Mine Life Fig 5.0.1

Daily Ore Processing estimates

The table below (figure 5.1.1) shows the target ore daily processing goal for a single month’s production of ore. The extraction of gold is based on a 10 gram per ton estimate. The 10 grams per ton estimate is base of the test results from the PASMI lab results. (see Figure 4.0 A and Figure 4.0 B above)

DayTons Per DayGrams Per DayOz’s Per Day$1,300/OZ
TOTAL130001300004179.5$5,433,350.00
Day 15005000160.75$208,975.00
Day 25005000160.75$208,975.00
Day 35005000160.75$208,975.00
Day 45005000160.75$208,975.00
Day 55005000160.75$208,975.00
Day 65005000160.75$208,975.00
Day 75005000160.75$208,975.00
Day 85005000160.75$208,975.00
Day 95005000160.75$208,975.00
Day 105005000160.75$208,975.00
Day 115005000160.75$208,975.00
Day 125005000160.75$208,975.00
Day 135005000160.75$208,975.00
Day 145005000160.75$208,975.00
Day 155005000160.75$208,975.00
Day 165005000160.75$208,975.00
Day 175005000160.75$208,975.00
Day 185005000160.75$208,975.00
Day 195005000160.75$208,975.00
Day 205005000160.75$208,975.00
Day 215005000160.75$208,975.00
Day 225005000160.75$208,975.00
Day 235005000160.75$208,975.00
Day 245005000160.75$208,975.00
Day 255005000160.75$208,975.00
Day 265005000160.75$208,975.00

Monthly Ore Estimates

The monthly production table listed below shows the monthly ore processing goals for gold production and sales. In month seven the company a second plant is added to double the production output from 500 tons or ore to 1000 tons of ore per month.

26 d/monthOre t/monthGrams/monthOz’s/month$1,300 /month
TOTAL234,0002,340,00075,240$97,812,000.00
Month 113,000130,0004,180$5,434,000.00
Month 213,000130,0004,180$5,434,000.00
Month 313,000130,0004,180$5,434,000.00
Month 413,000130,0004,180$5,434,000.00
Month 513,000130,0004,180$5,434,000.00
Month 613,000130,0004,180$5,434,000.00
Month 713,000130,0004,180$5,434,000.00
Month 813,000130,0004,180$5,434,000.00
Month 913,000130,0004,180$5,434,000.00
Month 1013,000130,0004,180$5,434,000.00
Month 1113,000130,0004,180$5,434,000.00
Month 1213,000130,0004,180$5,434,000.00

Yearly Ore Estimates

Operating YearsTons Per YearGrams Per YearOz’s Per Year$1,300/Oz
TOTAL4602000460200001479720$1,923,636,000.00
Year 1234000234000075240$97,812,000.00
Year 23120003120000100320$130,416,000.00
Year 33120003120000100320$130,416,000.00
Year 43120003120000100320$130,416,000.00
Year 53120003120000100320$130,416,000.00
Year 63120003120000100320$130,416,000.00
Year 73120003120000100320$130,416,000.00
Year 83120003120000100320$130,416,000.00
Year 93120003120000100320$130,416,000.00
Year 103120003120000100320$130,416,000.00
Year 113120003120000100320$130,416,000.00
Year 123120003120000100320$130,416,000.00
Year 133120003120000100320$130,416,000.00
Year 143120003120000100320$130,416,000.00
Year 153120003120000100320$130,416,000.00

Senegalese Climate, Weather & Terrain

SENEGAL lies in western Africa, bordering the Atlantic Ocean, between Guinea-Bissau and Mauritania. It covers a land area of approximately 196,000km2 and has a total coastline of 700km. The capital city, Dakar, is located on the Cap Vert peninsula on the Atlantic Ocean. Senegal is the westernmost country on the African continent, and shares borders with Mauritania, Mali, The Gambia, Guinea and Guinea-Bissau.

Senegal has a typical sub-tropical African climate with dry and rainy seasons dictated by the wind patterns from the north-east and south-west. Annual rainfall in the country’s capital does not normally exceed 600mm, and the main rainy season occurs between June and October. Maximum temperatures during the rainy season average 27°C. Between December and January, the climate is colder and dryer, with average temperatures rarely exceeding 17°C.The coastal area stays cooler than the hinterland and the southern area receives the majority of the country’s rainfall, often exceeding 1,500mm annually in some areas.

The terrain ranges from desert land in the north to moister, more tropical areas in the south but is generally low-lying land, rising slightly from the coastal plains to foothills in the south-east. Senegal has a population of some 13 million (estimate as of July 2012), of which 70% live in rural areas.

The population is growing at an annual rate of over 2.3%, and the population density varies from 77 per km2 in the west central area to 2 per km2 in the east. Senegal has a young population, 43% of which are under the age of 15. The average life expectancy is 58 years for women and 55 years for men. The Senegalese currency is the Communauté Financière d’Afrique franc (CFA), which is used in 12 African countries and issued from the Central Bank headquarters in Dakar for the Union Economique et Monétaire Ouest Africaine.

Mine Development, Ore Processing Plant Design & Operation

Our mine development was implemented in 5 stages.

  • Semi strategic geochemistry exploration
  • Analysis and interpretation
  • Tactical geochemical prospecting
  • Trenches, survey ad essay appraisal
  • Evaluation of exploitable ore resources

Cheikh T. Diop Geology and Engineering was contracted to conduct all stages of the mine development and processing plant design plan. The SGS testing will be conducted at the Bamako Mali lab. Once the test results are received, an updated version of this report will be furnished.

GEOCHEMISTRY TACTICS

Introduction

NGari Seekoto and Tinkoto Sou perimeters are covered on more than 80% of their surface by the laterite ironstone, a fact which makes it difficult to geological prospecting work. Ground rock geo-chemistry is so vital to the boundaries of the known mineralized structures and the discovery of new gold anomalies on these perimeters. The geo-chemistry work is coupled with a recognition geological survey 1: 10 000, carried out by a geologist the coordinator of field work.

Geo-chemical sampling began January 19, 2014 by the opening of additional access tracks to facilitate the movement on the ground and thus greatly reduce the time of operations. It was preceded by the Organization with two meetings of consultation (January 15 and 18, 2014), with the participation of those responsible for the strategy which were a consulting geologist, prospector geologist and a Laboratory Assistant. In 16 days, 517 samples of soil and laterites, were collected. SGS Analabs de Bamako laboratory retrieved samples on February 20, 2014. Mr Lamine Sy, head of the Department of industry and the Mines of Kedougou, conducted a tour of the perimeter of Tinkoto Sou, during the geochemical sampling.

1. Methodology

Sampling was conducted along the geochemistry profiles, spaced 100 meters apart, with sampling every 25 meters.  The coordinates of the points were determined using a GPS (UTMWGS 84) and recorded in the field notes.  Both types of samples were taken.

Soil or laterites

Soil samples are systematically taken on soft soil or lateritic sites at an average depth of 20 to 40 cm depending on the hardness of the ground. Prior to sampling, the superficial part, often moist, is etched.

In each hole, 2.0 kg of soil or laterites are collected using bar to mine and put in plastic bags for shipment to the analytical laboratory.

Rocks

All rock outcroppings are noted in the field notes, their directions and dips are measured; an exhaustive description is made by the geologist, to facilitate the development of future 1 10 000 geological mapth.

For the purposes of the geochemical sampling, quartz veins and rocks with something positive to the presence of gold (it is rocks rich in sulfide or boxworks or strongly injected of quartz veins) are harvested: 2.0 kg of rocks splinters are collected.

Along the profiles, the trees are marked to facilitate their tracking on the ground: are noted the name of the profile and the number of the sample.

The following coding is adopted for the identification of types of specimens (prefix followed by the number):

 Types of samples
TS1 Sample 1 ground Tinkoto Sou
NS1 Sample 1 soil of NGari Seekoto
F1 Ech.1 Vein 1 sample 1
P1M1 Well 1 of ore sample 1

2. Organization of teams of multimedia geochemical sampling

The Geo-chemical prospecting program on the perimeters of Tinkoto Sou and NGari Seekoto, conducted by a team of field. The staff was structured as follows:

  • 1 Geologist-Consultant, Designer and Coordinator of the Work.
  • 1 Prospector Geologist, Responsible of the Geo-chemical Sampling.
  • 3 Assistance for Prospectors, Responsible for the Strategy.
  • 1 Laboratory Assistant, Tracking Numbers and the Weight of the Samples.
  • 6 Daily Maneuvers.

3. Evaluation of the number of samples

The number of samples by grid (perimeter) is given in the table below:

Grid/Perimeter Soil and Laterite Roche TOTAL
TOTAL 47740517
Tinkoto Sou 235 39 274
NGari Seekoto 242 1 243

4. Sending of samples to the laboratory SGS of Bamako

All samples which there are 517 (see table 3 below), were sent to the laboratory SGS Analabs in Bamako. The truck of the laboratory came on 20/02/2014, retrieve samples.

Table 3: List of samples sent to the laboratory.

5. Expected results

The perimeters of NGari Seekoto and Tinkoto Sou are gold known for a very long time: they have been the object of operation artisanal gold eluvionnaire and Pocahontas.

The geochemical survey was designed to:

  • Allow from the surface anomalous follow (delimit) the gold bearing structures already known;
  • Discover new anomalous areas, not known by the Stampeders (artisanal miners);
  • Define the content of gold in gold-bearing quartz ore operated wells in the perimeter of Tinkoto Sou;
  • Have the geochemical information sufficient to begin, the 2nd part of the first phase i.e., of the trenching and prospecting wells, intended for the assessment of mineable gold resources in such perimeters.

For the interpretation of the future results of the analytical laboratory (SGS Analabs), it will be necessary to take account of the following information:

  • The geochemical background in the laterites of the region of Kedougou, is in general very low (< 10 ppb), that is why, here all values (results) higher or equal to 30 ppb, will be considered to be anomalous.
  • In the 22 gold-bearing quartz ore samples, expected to levels in gold, over 3 g/t.
  • The results of the other 18 samples of quartz vein should enable us to know whether or not these veins are gold surface (outcrop).

 TEST RESULTS

The results of the geochemistry were received from the SGS Lab  on 3//7/2014 and are correct: The geochemical background of laterites is less than 10 ppb (0.01 ppm or g / t). Whereby all results equal or superior to 0.02 ppm (g / t), can be considered anomalous. 20 of the 22 samples taken from the exploited pits of artisanal  miners, provide greater than 1 g / t. 4 successive values ​​are more than 50 g / t (Attached file). The average grade of the gold quartz vein is 48.39 g / t.

Geologist preparing maps, and program of tranches and pits

ORE SAMPLINGORE CONTENT G/T
AVERAGE48,39
P1M12,5
P2M21,14
P3M34,18
P4M41,28
P5M52,78
P6M60,43
P7M717,7
P8M847,5
P9M924,9
P10M104,86
P11M1136,9
P12M123,3
P13M1324,3
P14M1434,2
P15M15240
P16M1654,6
P17M17138
P18M18389
P19M1923,3
P20M205,9
P21M217,84
P22M220,05
SUM1064,66

The results as show on the map have led to some interpretations. The correlation of the anomalies shows oriented structures globally in the axis (N to NNE) direction. Mineralization controlling factors, the most notable seems to be the disjunctive tectonic factor: faults, whose intersections represent areas of swelling (enlargement) of the gold mineralization. Three of these areas have been identified, among which, orpaille currently the site where 2 gold mineralized veins are known.

On the basis of the results of the interpretation, we were able to project 7 trenches and 7 exploration wells. The depth of the trench will be 4-5 m and that of 12-15 wells, all of which will be sampled meter by meter and analyzed onsite. 25% of the total number of samples will be sent to SGS Analabs of Kayes, for control. At the end of this work, an estimate of the gold potential and exploitable resources will be made. For the treatment of the samples on the spot, it will be necessary to install a small processing test unit. It will also provide a small production (3 T/H), with the ore selected, relatively strong (> 10 g/t).

Phase II consist of:

  • Construction of the mining camp
  • Installation of the test unit
  • Ore testing and treatment methods.

Phase III consist of:

  • Ore Stockpiling for production operation
  • Installation of the large treatment unit for main ore production.
  • Site Plan

The mine site plan (Figure 7.4 1) shows the mine ore bodies in green and the processing plant located outside of the ore bodies and within 3 kilometers from  the Gambian River.

Leave Comment