The gold deposits are located within Birimian’s Massigui gold project in southern Mali.
The Morila gold mine is managed by Societe de Mines De Morila, a joint venture between operator Randgold Resources, Anglogold Ashanti, and the Republic of Mali. It started production in 2000 and the mine has since produced in excess of 7 Moz of gold.
The project has now largely exhausted existing ore sources and will be reconfigured to process tails.
Birimian said the agreement provides a potential low risk, low cost processing solution for these deposits, while the company retains the upside potential for further gold discoveries on the broader project area.
Under the terms of the agreement, Morila has been granted a six-month option to acquire an area of interest within the project. Upon exercising the option, Morila will make a payment of $1 million and Birimian will retain a royalty of up to 4% of gold produced from the area of interest.
The Massigui gold project surrounds the Morila mine lease on three sides and covers strike extensions of the highly prospective geological sequence that hosts the 7 Moz Morila gold deposit.
Birimian has made significant gold discoveries at three prospects; namely Ntiola, Viper and Koting. These prospects are situated in close proximity to the north-west of the underutilised 4 Mtpa Morila Mine Treatment Plant. Over 35 000 m of drilling has been completed on the project to date.
The area of interest comprises 11 km and covers the gold deposits at Ntiola and Viper. The balance of the project area is 740 km and controlled by Birimian. The early stage, high potential, Koting prospect and other highly prospective areas are not included within the area of interest. The company intends to undertake further low cost exploration and drilling activities at these locations.
The deposits at Ntiola and Viper are subject to the Morila option agreement. Based on the current drilling at Ntiola and Viper an Exploration Target is estimated in the range of 4 – 6 Mt grading approximately 1.2 – 1.8 g/t gold.