AMN - MALI: Highest grade gold intercept from Syama

Resolute Mining has delivered a 5-metre intersection grading 493 g/t gold, the highest grade intercept reported from the Syama Gold Project in Mali in more than 30 years of exploration.

The intersection came from 167 metres depth in the Tabakoroni Main Zone. This hole also returned 17 metres at 3.6 g/t from 188 metres and 15 metres at 3.3 g/t from 227 metres.

Strong results were also returned from ongoing diamond drilling at the Syama Deeps and Nafolo deposits while a new mineralised zone has been identified at Tabakoroni Nord.

The results increase Resolute’s confidence for an enlarged mining inventory and a future underground mine at Tabakoroni, which is 35 kilometres south of the Syama mine.

Resolute expects to release an expanded and upgraded resource for Tabakoroni in late 2018.

Resolute’s managing director and CEO John Welborn said the successful exploration programs at Syama would create a new growth story for Resolute. “The excellent high-grade intersections from new zones at Syama are extremely significant and very exciting.

"Today we announce the highest grade intersection ever reported from Syama in more than 30 years of exploration by ourselves, Randgold, and BHP.

"Diamond drilling is consistently delivering wide and strongly mineralised intercepts.

"Syama is already a 10 million ounce ore position and these results confirm our resource base will continue to grow."

Open pit mining operations are scheduled to begin at Tabakoroni at the Namakan Pit this quarter.

During the rest of 2018, the main source of oxide ore for Syama’s oxide processing circuit will be ore sourced from mining operations at Tabakoroni with the current mine plan based on the existing defined mineral resource of 778,000 ounces of gold.

At Syama Deeps and Nafolo the best results are 31 metres at 2.3 g/t from 655 metres, 50 metres at 2.3 g/t from 738 metres and 15 metres at 4.3 g/t from 637 metres.

The Nafolo deposit, which is adjacent to the Syama Underground mine, now extends over 700 metres of strike length and remains open to the south.

Syama Underground indicated and inferred resources stand at 5.7 million ounces and includes the Nafolo maiden inferred resource of 400,000 ounces.

A program of infill drilling is planned at Nafolo to reduce drill spacing to 50-metre centres, which is the density required to upgrade the resource to the indicated status.

An updated resource will form the basis for further underground studies at Nafolo.

This work will be incorporated into the broader Syama optimisation studies which are examining the potential for an expansion in mining and processing.

Multi-rig exploration drilling continues at Syama, Nafolo and Tabakoroni aimed at further extending existing oxide and sulphide resources.

An updated definitive feasibility study for the Syama underground mine has reduced life of mine all-in-sustaining costs to US$746 per ounce from US$881 and increased mine life by four years to 2032.

Another positive outcome from the DFS was a 38% increase in the Syama underground probable reserve to 35.2 million tonnes at 2.7 g/t gold for 3 million ounces.

Welborn said the company’s investment in technology and exploration had resulted in a substantial expansion to Syama’s scale, operating margins and value. “Our ambition at Syama is to transform this world gold class deposit into a world-class gold mine.

“The updated DFS numbers capture the progress we have made in exploration, automation, and power, and confirm Resolute is transforming Syama into a robust, long-life, low-cost mine.

“We are developing a new underground mine and are on track to commence sub-level caving in December 2018.”

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