Safamo, the Canadian-based gold mining company has reported that some of its employees began an illegal work stoppage at its Mana mine some 260 km west of the capital city Ouagadougou.

Safamo said that the stoppage started on Saturday evening, November 29 in spite of a collective agreement having been made. The agreement was due to run until December 2015 so the company and unions are in talks to find a speedy solution to the issue.

Gold Deposits and potential

Safamo has undertaken extensive exploration expansion in the Siou sector since 2012 and by December 2013 diamond drilling has shown some 4.8 million tonnes at 4.9 g/t Au for 769,300 ounces in situ in pit. With these continued encouraging results from the Siou Sector, in 2013 the corporation invested approximately $21.4 million and completed 23,850 meters of core drilling, 106,980 meters of RC drilling and 209,700 meters of auger drilling.

Two thirds of the exploration programme was used to convert a portion of Siou’s inferred in-pit resources to proven and probable reserves up to a depth of 180 meters.

Expenditure 2014

An exploration budget of $18.5 million has been allocated to the 2014 drilling programme, which comprises 290,000 meters of auger, 103,000 meters of RC, and 33,000 meters of diamond drilling. The budget includes a $4.5 million provision for definition drilling between 180 and 225 meters vertically at Siou with the objective of replacing and increasing the Siou reserves base.