Name and Location
Kalana gold project, Mali.

Client
Avnel Gold Mining.

Project Description
The results of a mineral resource estimate and a preliminary economic assessment (PEA) on the Kalana gold deposit have indicated the potential for the development of a new mine at Kalana.

The mineral resource estimate demonstrates a viable project, with an indicated resource of 8.5-million tonnes at a gold grade of 4.53 g/t for contained gold of 1.25-million ounces (cutoff grade of 0.9 g/t). Inferred resources are estimated at 2.1-million tonnes at a gold grade of 3.76 g/t for contained gold of 0.25-million ounces (cutoff grade of 0.9 g/t).

The PEA proposes an operation with a mine life of 14 years, recovering 1.46-million ounces, with gold production averaging 138 000 oz/y gold for the first four years and 98 000 oz/y gold over the remaining life-of-mine.

The mine will comprise:
• a three-stage openpit containing 15.1-million tonnes at 3.2 g/t of gold and 128-million tonnes of waste;
• 655 000 t of tailings at 1.8 g/t of gold; and
• a 1.2-million-tonne-a-year conventional gravity and carbon-in-leach process plant, achieving 93% recovery for saprolite, saprock and fresh material, and 83% recovery for tailings.

The openpit will be mined in three stages with preferential processing of higher grades and lower grade material stockpiled for later processing.

Value
Total capital expenditure is estimated at $188-million, comprising $134-million for the plant, mine services and infrastructure; $15-million for prestripping; $29-million in sustaining capital and community; and
$10-million for the mine’s closure.

Duration
The PEA envisages a two-year construction period, with first production expected in the second half of 2017.

Latest Developments
Avnel intends to start a prefeasibility study immediately and, assuming that it is positive, a feasibility study.

Key Contracts and Suppliers
Not stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Avnel Gold Mining executive director, technical and operations, Roy Meade, tel +223 6674 7679 or
email rmeade@avnelgold.com.