Name of the Project
Diba gold project.

Location
In the Kayes region of western Mali.

Project Owner/s
Altus Strategies.

Project Description
A preliminary economic assessment (PEA) has provided robust results for the oxide portion of the Diba hill deposit. Diba hosts the Diba deposit, as well as the Diba NW and Diba Far East prospects, and is located about 5 km west of Altus’s 24 km² Lakanfla gold exploration licence.

The PEA envisages a simple, low-cost and -strip ratio conventional openpit gold mine using standard heap-leach processing.

Based on the assumption that the leach pad will be located to the south of the pit, the Diba project life-of-mine (LoM) plan will comprise the simultaneous exploitation of three openpit deposits.

Pit phasing and exits are independent of one another; the first-phase exit is located at 160mRL, the second phase exit at 150mRL and the third pit at 145mRL. The overall strategy is to achieve an average LoM production of 4 000 t/d. The strip ratio is expected to average 1.37:1.

The Diba project oxide zone appears to be amenable to conventional cyanide leaching using either agitated tank leach or heap-leach technology.

The project will produce about 52 000 oz/y over a 3.2-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project will generate a pretax net present value, at a 10% discount rate, of $115.2-million yielding an internal rate of return of 728%, with a payback of 6.2 months.

Capital Expenditure
The project requires preproduction capital of $20-million.

Planned Start/End Date
Not stated.

Latest Developments
Altus Strategies was awarded a small-scale gold mining licence by the Mali Ministry of Mines, Energy and Water on April 15. The licence was issued in respect of the company's 100%-owned 83.1 km² Korali Sud licence comprising the Diba gold project. The licence was granted for an initial four-year period and is renewable until the deposit is depleted.

The mining licence is also transferable to third parties with approval from the Ministry of Mines, Energy and Water.

The company's application for the licence included various studies and files, including an environmental permit, a mine closure and rehabilitation plan, as well as a community development plan. There are no statutory minimum expenditure commitments under the mining licence.

Altus retains the option to apply for a full-scale mining licence at a later date, subject to the delineation of a larger mineral resource estimate, the company has said.

The mining licence includes requirements for quarterly and yearly operational reports to be submitted to the Ministry of Mines, Energy and Water.

Altus is required to pay a yearly surface royalty of about $170/km².

The company has also commissioned independent consulting firm Mining Plus of Bristol, UK, to update the mineral resource estimate and PEA for the combined Diba and Lakanfla project.

The latest estimate for the Diba deposit shows about 4.8-million tonnes at 1.39 g/t gold for 217 000 oz in the indicated category and about 5.4-million tonnes at 1.06 g/t gold for 187 000 oz in the inferred category.

Key Contracts, Suppliers and Consultants
Mining Plus UK (PEA update and mineral resource update); and Grinding Solutions of Truro (heap-leach and CIL amenability for the oxide and sulphide domains of the Diba gold deposit).

Contact Details for Project Information
Altus Strategies, tel +44 1235 511 767 or email info@altus-strategies.com.