Ongoing drilling aims to increase gold resources and provide additional mineable oxide material for the Shambesai Gold Project.
An expanded program of more than 12,000m of resource and development drilling was undertaken at Shambesai during 2011 with the aim of:
- Rapidly upgrading all resources in the current pit optimisation;
- Testing areas for further shallow oxide at the edge of the existing resource;
- Testing the fault zone between the deep and main Shambesai zones; and
- Defining the zone at the western boundary of the current pit with the goal of substantially increasing the resource and pit extent.
Figure 1 – Shambesai Drill Hole Plan
The first phase of the Shambesai 2011 drill program completed infill and extension drilling with a focus on shallow oxide zones, as well as the fault zone between the deep and main Shambesai Zones.
Figure 2 – Shambesai Mineral Resource oblique top view towards NE showing western target areas
Results of a pit optimisation study released in November 2011 demonstrated potential for net cash flows of up to US$190 million over the initial five years by producing more than 200,000 ounces of gold (EBITDA at US$1,500/oz gold price). Cash costs are estimated at US$370 per ounce for the first four years and US$465 per ounce for life-of-mine.
A Definitive Feasibility Study was completed in April 2012. Technical design and government consultation for mining permits have also commenced with major shareholder and West African gold developer Perseus Mining Limited providing technical assistance.