Burkina Faso

The Youga and Balogo Gold Mines were acquired from Avesoro Jersey in December 2017.

Location

The Youga and Balogo Gold Mines are located in the province of Boulgou in Burkina Faso. Youga is located approximately 180km south east of the capital of Ouagadougou, adjacent to the Ghanaian border. The Youga licence contains Reserves comprised of seven open pit deposits and well as a 1.1Mtpa CIL processing facility.

The Ouaré deposit is located 44km to the east of the Youga Gold Mine, whilst the Balogo Gold Mine is located 154km to the west. Combined, the operations have a current mine life running to 2025.

Title

The Youga Property consists of one Exploitation Permit (Youga), and two Exploration Permits (Songo and Zerbogo II). The Ouaré Project is comprised of four Exploration Permits (Bitou 2, Bitou Sud, Bitou Nord and Bitou Est). The Youga Exploitation Permit covers an area of 29 km2 , and was granted on 8 April 2003 and is valid for 20 years with five-year renewal periods. The Balogo Project is covered by two contiguous Exploration Permits (Balogo and Dabinyan III)

Processing Plant

The processing plant at Youga consists of three-stage crushing and a single ball milling circuit followed by gravity, cyanide leaching and a five-stage CIL circuit and electrowinning to produce dore bars; nameplate capacity is 1.1Mtpa. Power is supplied primarily via the

Ghanaian grid with back up diesel generators availble on site.

2017 Mineral Resource Statement

Measured & Indicated Resource Estimate

  

Deposit

Indicated

Inferred

Tonnes Mt

Au Grade g/t

Au Metal Koz

Tonnes Mt

Au Grade g/t

Au Metal Koz

Youga

10.5

1.41

474.7

5.7

1.28

234

Ouare

5.1

1.39

228.3

7.2

1.8

406

Balogo

0.45

6.75

98.6

0.1

4.0

15

Total

16.05

1.55

801.6

13

1.57

655

Notes

  1. Reporting cut-off for Resources is 0.55 g/t Au for all deposits.
  2. The Mineral Resource and Reserve Estimate has been depleted for mining up to 28th February 2017. The effective date of the Mineral Resource is February 28th, 2017.
  3. Figures have been rounded to the appropriate level of precision for the reporting of Resources and Reserves.
  4. Due to rounding, some columns or rows may not compute exactly as shown.
  5. The Mineral Resources and Reserves are stated as in situ dry tonnes. All figures are in metric tonnes.
  6. The Mineral Resources and Reserves has been classified under the guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council, and procedures for classifying the reported Mineral Resources were undertaken within the context of the Canadian Securities Administrators National Instrument 43-101 (NI 43-101).
  7. The Mineral Resource is reported above a surface based on the NPVS shell from a US$1,500 gold price pit optimisation run to support assumptions relating to reasonable prospects of eventual economic extraction. The Mineral Reserve is reported at a US$1,250 gold price.
  8. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  9. Mineral Resources have been reported inclusive of Mineral Reserves, where applicable.
  10. Modifying factors of 90% mining recovery and 10% waste dilution have been applied in calculating Mineral Reserves
  11. Probable Reserves were derived from Indicated Resources.

2017 Mineral Reserve Statement

Probable Mineral Reserves Estimate

  

Deposit

Tonnes Mt

Au Grade g/t

Au Metal Koz

Youga

5.98

1.43

275

Ouare

2.64

1.67

141

Balogo

0.28

8.81

78

Total

9.32

1.71

513