Name of the Project
Makabingui gold project.

Location
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.

The openpit mining operations will be extended to mine deeper resources and could include underground operations, while further openpits are expected to be developed within the tenement and along strike.

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.

Jobs to be Created
Not stated.

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
Bassari Resources is poised to develop the Makabingui gold project after securing project financing.

The company has received approval for a credit facility requested by Coris Bank International for the project, following the completion of a due diligence.

The loan facility is for an estimated $13-million, at an interest rate of 9% a year, and includes standard security arrangements over the assets of the Makabingui gold operations, including plant and equipment, gold stocks in production and in transit, and guarantees provided by Bassari.

Bassari has been prepared for the start of early development activities on the completion of the project finance package and board approvals.

In recent weeks, Bassari and engineering firm Mincore have refined the project execution plan and started to secure the availability of people and resources required to start the project development.

The first phase of the Makabingui gold project development continues with preparation of mining-related activities for the start of pit development. Several other activities are also under way or in preparation, including detailed geological interpretation for mine planning and mine site surveying of the openpit waste dumps, haul road and infrastructure areas.

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.