Makabingui Gold Project in Senegal, owned by Australian-listed Basari Resources, has acquired additional funding to the tune of US $ 1 million from surface mining and earthworks specialists BCM International. Funds raised will be applied to development activities for the Makabingui Gold Project and its working capital.
Basari Resources Managing Director Jozsef Patarica said that they are continuing to advance funding options with a number of banks and financial institutions, having recently conducted site visits advancing their due diligence work. “The outstanding results of the high grade open pit feasibility study, along with the high grade underground scoping study, has attracted considerable interest from a number of funding sources.”
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The funds were acquired via the issue of convertible notes with face value of 1.6 cents (USD), bearing interest at a rate of 8% annually and payable quarterly.
The convertible notes will be issued in three tranches to BCM International, major shareholder in Basari Resources, (or their nominee) for conversion or repayment in 12 months. However, the instalments have been calculated to be repaid in November and December 2014, and January 2015.
The Makabingui Gold Project currently hosts a Mineral Resource comprising 11.9 million tonnes, averaging 2.6 g/t gold for a contained 1 million ounces of gold classified into the Indicated and Inferred Resource categories. The initial open pit mining phase focuses on the Indicated Resource based on a conventional gravity and Carbon in Leach (CIL) processing circuit.
All investment opportunities for this mining project, and many others, are available for viewing on Africa Mining IQ. Africa Mining IQ organises projects in terms grassroots, pre-feasibility, feasibility, bankable, active and operational phases. There are currently 44 mining projects in Senegal listed on the Africa Mining IQ database, 40 gold, 1 diamond, 1 ilmenite, 1 iron ore and 1 uranium.
An underground scoping study was undertaken providing an assessment of the potential for an underground development phase for the Makabingui Gold Project within the one million ounce gold resource. Underground development would commence on Completion of Pit 1 mining operations and utilise existing infrastructure and 300k tons per annum processing plant factored into the Open Pit Feasibility Study for the development of four high grade open pits.
Bassari holds a 70% interest in each of three contiguous exploration permits; Sambarabougou, Moura and Bounsankoba, covering approximately 850 m² in a central location of the highly prospective Birimian Kenieba Inlier. The permits are located approximately 750 km east of Senegal’s capital city of Dakar and about 70 km north east of the town of Kedougou, and span 80 km strike length of parts of a major crustal shear zone, the Main Transcurrent Shear Zone (MTZ), a well-defined gold mineralised structural corridor. The Kenieba Inlier hosts several multi-million ounce gold deposits and extends into the bordering countries of Mali and Guinea.
Great potential Basari is extremely positive of the much larger exploration potential that exists within close proximity to both the Makabingui Gold Project and also within the three contiguous permits.
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