Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Roscan Gold has signed a definitive agreement with Komet Resources to purchase the 35-sq.-km Dabia Sud gold property, which lies directly north of the company’s 254-sq.-km Kandiole project in the western part of Mali.
In May, Roscan entered into a binding letter of intent with Komet for this purchase. To acquire the asset, the company will make a C$1.6 million payment and issue C$1.6 million worth of its shares to the vendor. Closing is expected by the end of this month.
Roscan also announced an increase to its drill budget for Kandiole – the company plans to drill 45,000 metres this year
“Our goal is to immediately commence exploration after the acquisition,” Nana Sangmuah, the company’s president and CEO, said in a release.
“Exploration focus at the Dabia Sud gold property will be to evaluate the highly prospective regional targets at Komet Mali with our updated drill program.”
The Dabia Sud property includes a historical pit-constrained resource estimate of 3.2 million indicated tonnes grading 1.03 g/t gold and 1 million indicated tonnes at 1.14 g/t gold, based on a 0.4 g/t gold cut-off grade. These estimates are based on a heap leach gold recovery with an average drill depth of 80 metres.
Roscan also announced an increase to its drill budget for Kandiole – the company plans to drill 45,000 metres this year (up from 30,000 metres previously).
Kandiole hosts a 7-km-long prospective corridor as well as eight exploration targets.
In May, the company released drill results from the Mankouke South target: these include 62 metres of 4.84 g/t gold and 46 metres of 4.76 g/t gold. The project is within 25 km of B2Gold’s Fekola mine and Iamgold’s Boto project.
(This article first appeared in the Canadian Mining Journal)
