Exploration and Development

In the first quarter of 2016, the exploration budget for 2016 was expanded from $11 million to $18 million, $6.5 million of which has been allocated to the Mana project, $9 million to the Natougou deposit, $1.5 million to the Nabanga project with the balance of $1.0 million to other properties.

Following evaluation of our exploration strategy, we ceased exploration activities at Banfora in late 2015, focused on areas within trucking distance of the Mana Mine and Natougou deposit and initiated exploration in Côte d’Ivoire.

Korhogo (Côte d’Ivoire)

An airborne geophysical survey was completed (1,290 line kilometers of magnetic radiometry) over the northern half of the Korhogo Ouest permit in the third quarter of 2016. Data from this survey are currently being processed. Supplementing the survey, an infill soil sampling program commenced in early October that will better delineate the newly identified gold-in-soil anomalies. A complete data set (geochemistry and geophysics) will serve as the basis for evaluating a follow-up exploration program.