AMN - SENEGAL: New gold zone at Makabingui

Bassari Resources' geologists have discovered a new gold zone about 800 metres to the east of the mineralised system at Makabingui Gold Project in Senegal. The zone is likely to add to Makabingui's 1 million ounce resource at 2.6 g/t.

Geologists sampled eight rock chip samples with one sample returning a high-grade sample of 4.2 g/t. The surface area has recently been mined by artisanal miners confirming the new gold zone.

This new find demonstrates that the entire Makabingui gold system is still open and appears to be swinging around the Sambarabougou granite in an easterly direction in continuation with the same Makabingui geological setting.

Gold is seen where the new samples were taken, to be in similar shear structures at the contact of the meta-volcanics (gabbro), and metasediments in close proximity to the granite.

The exploration team proposes to demonstrate the potential of this previously unknown zone by conducting an induced polarisation survey over the 800-metre trend to provide better definition of the contact structures, and this would be followed up by drilling.

In addition to the 8kms of strike at Makabingui South, if Bassari's interpretation proves to be correct, it opens up Makabingui to being a much larger system, probably containing much more gold than currently defined.

Bassari has tenements over about 590sqkm of prospective Birimian Gold Belt in Senegal.

A feasibility study for Makabingui outlines an initial high-grade open pit project of 1 million tonnes at 5.7 g/t for a 174,000-ounce production inventory at a $678/ounce cash cost, US$90 million pre capex after-tax cash flow in first three years and expansion anticipated from underground.

The JORC 2004 compliant mineral resource is 1 million ounces in 11.9 million tonnes at 2.6 g/t gold. It includes 336,000 ounces in the indicated category in 2.6 million tonnes at 4.0 g/t and 669,000 inferred ounces in 9.3 million tonnes at 2.2 g/t.

The open pit JORC 2012 probable ore reserve is 158,000 ounces in 860,000 tonnes at 5.7 g/t.

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