PERTH (miningweekly.com) – The Senegalese Minister of Mines has granted ASX-listed Bassari Resources an exploration permit over the Makabingui gold project.
The exploration permit, which has a five-year term, and is renewable for one or more periods not exceeding five years each, covers the Makabingui one-million-ounce gold deposit, as well as the 8-km of strike at Makabingui South.
The exploration permit will see the formation of an exploitation company, with the Senegal government to be issued a 10% noncontributory interest.
The exploration permit has also been granted a number of tax exemptions, for a period of three years, including the exemption from export taxes; value added, property and services taxes; and basic tax payable by employers.
Furthermore, past project exploration expenses incurred by Bassari will be presented to Senegalese authorities, and will be classified as contracted debt of the newly incorporated exploitation company, and will become repayable in accordance with the Mining Convention.
In exchange for the exploration permit, the project will pay a 5% royalty on all gold sold, on a quarterly basis, and will invest $100 000 on social development in the region during predevelopment, and a further 0.5% of gold sales thereafter.
The project will also contribute $150 000 annually for the training and development of Senegalese in the mining sector.
The Makabingui project currently has a mineral resource of 11.9-million tonnes, grading 2.6 g/t gold for one-million ounces of gold. The first stage of development will see an openpit operation to access high-grade pits comprising 180 000 mined ounces.
The openpit mining operations will be extended to mine deeper resources, and could include underground operations, while further openpits were expected to be developed within the tenement and along strike.
The project was expected to have a processing rate of 300 000 t/y and deliver average annual production of 50 000 oz, over a nearly four-year mine life.