Mali – Owned by ASX-listed gold explorer Birimian, 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.
The Morila gold mine is managed by Société des Mines de Morila SA, 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’s targeted drilling programmes have resulted in significant gold discoveries at the Ntiola, Viper and Koting prospects. These are situated approximately 25 km to the north-west of the Morila mine treatment plant, operated by Randgold Resources.
The Morila Area of Interest comprises 11km2 and covers the gold deposits at Ntiola and Viper. The balance of the project area (607km2) is controlled 100% by Birimian.
The agreement with Morila provides a potential low risk, low cost processing solution, whilst Birimian retains the significant upside potential for further gold discoveries on the broader project area.
Subject to final title transfer, Morila will make a payment of US$1 million to Birimian and pay a royalty of up to 4% of gold produced from the Area of Interest.
Feasibility studies and mine permitting are expected to take approximately six months to complete, leading to possible mine development early in the new year.
Birimian will provide guidance on expected production when final mine planning has been completed by Morila.