Boungou Project

At Boungou, the 2017 budget of $15 million includes a provision of $8.5 million for an infill drill program designed to convert current inferred resources on the West and East Flank Sectors into the indicated category and $1.3 million, which has been earmarked for completing studies in order to evaluate a potential underground operation. The remainder of the program involves exploration drilling on both proximal and contiguous permits to the Boungou deposit.

2017 Priorities

In 2017, we plan:

  • To drill up the West Flank Sector, located immediately to the southwest of the open-pit deposit, in the first half of 2017 in order to convert the inferred resources into the indicated category; and
  • To evaluate the potential for an underground operation
West Flank operations map

West and East Flank Sectors

In the second quarter, exploration activities principally involved completion of the infill program (40-meter by 40-meter spacing) on the West and East Flank Sectors of the Boungou reserves pit. A total of 49,400 meters of drilling in 326 holes was carried out in the first half of the year, most of which was for the infill program, with the objective of bringing the inferred resources into the indicated resources category in order to complete a pre-feasibility study in the first quarter of 2018. Results continue to be in line with the 80-meter x 80-meter model. The East Flank, although much smaller, has a similar structure to that of the West Flank.

The geotechnical drilling program on the East and West Flanks has also been completed, and samples have been sent to Rocklab in South Africa to establish engineering parameters. Results are expected in the third quarter of 2017. Analysis of the rock mechanics will be used in the design of the underground stoping in the pre-feasibility study.

The following table provides the highlights of the infill assay results received in the second quarter of 2017:

BHID From To Length Au_g/t Au_Capped
(45 g/t)
TPA1068 140.0 148.0 8.0 5.65 West Flank
TPA1069 168.0 173.0 5.0 4.52 West Flank
TPA1070 164.0 170.0 6.0 9.48² West Flank
TPA1077 153.0 158.0 5.0 5.14 West Flank
TPA1111 112.0 118.0 6.0 3.83 East Flank
TPA1118 117.0 124.0 7.0 6.28 East Flank
TPA1122 140.0 146.4 6.4 4.55 West Flank
TPA1124 141.0 146.0 5.0 5.17 West Flank
TPA1125 116.0 126.0 10.0 3.34 East Flank
TPA1126 148.0 154.6 6.6 5.19 West Flank
TPA1130 144.0 148.0 4.0 5.39 East Flank
TPA1133 140.0 151.0 11.0 6.40² East Flank
TPA1136 115.0 120.0 5.0 6.13 East Flank
TPA1137 117.0 124.0 7.0 3.20 East Flank
TPA1138 138.0 146.0 8.0 3.27 East Flank
TPA1139 155.0 162.0 7.0 3.88 East Flank
TPA1140 106.0 110.0 4.0 4.97 West Flank
TPA1141 108.0 121.0 13.0 2.13 East Flank
TPA1145 122.0 129.0 7.0 3.53 East Flank
TPA1149 86.0 93.0 7.0 4.14 East Flank
TPA1151 168.0 176.0 8.0 4.76 East Flank
TPA1152 173.0 182.0 9.0 2.36 East Flank
TPA1161 118.0 126.0 8.0 5.98 East Flank
TPA1166 80.0 87.0 7.0 4.04 East Flank
1All lengths are along the hole axis, and the true thickness is over 80% of the given length. 1Capped at 45 g/t Au

Exploration Potential at Boungou

Figure 1 displays the A-A section of the West Flank Zone that crosses the Boungou Shear Zone in a south-west to north-east direction.

Figure 1 – West Flank Boungou Shear Zone A-A Section

Figure 2 displays the B-B’ section of the West Flank Zone that crosses the Boungou Shear Zone in a north-west-south-east direction.

Figure 2 – West Flank Boungou Shear Zone B-B’ Section