Kongolokoro Project

The Kongolokoro sector consists of four exploration permits totalling 972 square kilometers located in the south-west of Burkina Faso.

For 2018, we plan to carry out core, RC and auger drill programs for total investment of $3 million. The program includes 3,000 meters of core drilling to test the down plunge extension of the Bantou Area and 13,000 meters of RC to explore both proximal targets and the Tankoro Zone. Historical drilling on the Tankoro Zone located to the southeast of Bantou, returned values of up to 8 meters of 5.02 g/t Au and 5 meters of 4.7 g/t Au.

Bantou

Late in the first quarter, a RC rig was mobilized on the Dynikongolo permit hosting the Bantou mineralized zone. In the second quarter, one RC rig was active on the property. Drilling is ongoing, and results remain pending. The 13,000-meter program on the permit has the objective of testing targets along the Bantou Zone and elsewhere on the property.

Investment in Savary Gold

In February 2018, SEMAFO invested $1.6 million (C$2 million) in Savary Gold Corp. SEMAFO owns 15.5% of Savary’s issued and outstanding shares on a non-diluted basis. Proceeds of the investment will be used to advance the Karankasso Project, adjacent to our Bantou deposit (see Figure 1).

Figure 1 - Location of Savary’s Karankasso Project Relative to Bantou Area