Name and Location
Makabingui gold project, Senegal.

Client
Bassari Resources.

Project Description
The Makabingui project currently hosts a mineral resource that comprises 11.9-million tonnes averaging 2.6 g/t gold for a contained one-million ounces of gold, classified as indicated and inferred resources; and a maiden ore reserve of 860 000 t grading 5.7 g/t gold. The initial mining phase focuses on the indicated component of the resource, based on openpit mining, with conventional gravity and carbon-in-leach (CIL) processing circuits.

The feasibility study completed on the project is based on a 300 000 t/y hard-rock operation, initially from four high-grade openpits delivering 50 000 oz/y over a 3.4-year mine life. Processing will be undertaken in two stages.

Stage 1 will be a circuit to maximise gravity recoverable gold, with Stage 2 being a conventional CIL circuit. The plant will be operated 24/7, with a design availability of 90% and a processing treatment rate of 38 t/h.

Additionally, there is exploration and mine-life upside within the Makabingui one-million-ounce resource and in the prospective area to the south.

Net Present Value/Internal Rate of Return
The project has an estimated net present value of $63-million and an internal rate of return of 404%, with payback from the start of production estimated at 12 months.

Value
The project is estimated at $12.1-million.

Duration
An indicative development timeframe to first gold production is eight months, with the critical path being the processing plant construction.

Latest Developments
The environmental- and social-impact assessment has been completed and lodged with the Senegal government.

The production permit application is well advanced and multiple project funding alternatives are being advanced.

Detailed design of the processing plant upgrade is 90% complete, with the mining tender at the final review stage.

The project development plan has confirmed that first gold is achievable in 2015.

Additional improvements to the new waste-rock dump design is expected to lead to potential mine cost savings.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Bassari Resources, tel +613 9614 0600, fax +613 9614 0550 or email admin@bassari.com.au.