Resolute Mining Limited (ASX/LSE: RSG) has identified a new high-grade opportunity at the recently acquired Mako Gold Mine in Senegal.
Managing Director and CEO, John Welborn, said diamond drilling undertaken at Mako has confirmed the potential of a coherent high-grade lode at the north-eastern end of the Mako open pit.
Mr Welborn said the positive exploration results demonstrate the potential for mine life extension at Mako and build on the exceptional operating performance of the mine since Resolute assumed ownership, with the mine producing 44,191 ounces at an All-In Sustaining Cost (AISC) of US$716/oz in the September 2019 Quarter.
Mr Welborn said it was pleasing to have received immediate confirmation of the opportunities to expand Resolute’s gold inventory with positive exploration results from the land package acquired from Toro Gold in July 2019.
“The Mako Gold Mine has already outperformed for Resolute and positive exploration results are further confirmation of value creation,” Mr Welborn said.
“The drilling results indicate strong potential to increase open pit gold inventory at Mako which will extend the life of our new high quality, low cost operation. We are delighted to be operating successfully in Senegal and we are actively seeking to expand our tenement package to include new high-quality exploration prospects.
“A highly prospective and expansive exploration portfolio covering over 2,800 sq km across Senegal, Côte d’Ivoire and Guinea was acquired as part of the Toro Gold transaction. In addition to the immediate opportunities for mine life extension at Mako, Resolute has identified significant additional opportunities to source oxide mill feed for Mako within trucking distance of the existing processing plant.
“We are investigating possible joint ventures and acquisitions of highly prospective ground in eastern Senegal. Resolute is committed to creating value through successful exploration. We are actively progressing exploration activities in Senegal, Côte d’Ivoire, and Mali seeking to add low cost, high quality ounces to our portfolio,” Mr Wellborn concluded.
Resolute’s exploration activities in Senegal in 2019 were focused on the existing Mako open pit with a view to expanding Mineral Resources and thereby extending mine life as well as at nearby satellite prospects. 7,000 metres of diamond drilling has been completed during 2019.
This programme comprised follow-up drilling of previously identified high grade gold mineralisation in the north-east corner of the Mako open pit and targeting down dip extensions of the mineralisation.
The follow-up drilling concentrated on high grade results from the north-east end of the Mako open pit to better define ore shoots for future resource modelling and estimation.
Importantly, the high-grade shoots are located below the base on the 2019 Ore Reserve pit shell and have the potential to expand the open pit Ore Reserves and extend mine life.