JOHANNESBURG (miningweekly.com) – Preliminary metallurgical testing results at Canadian junior exploration company Savary Gold Corp and West Africa-focused gold explorer Sarama Resources’ Houndé South property, in Burkina Faso, have shown gold recoveries averaging in excess of 93% for sulphide/nonoxidised mineralisation, Sarama said on Monday.
Sarama noted that it was close to finalising a joint venture (JV) with Savary, following a heads of agreement signed on March 10, covering the establishment of a JV company (JVCo), which would hold Sarama’s Sérakoro 1 property and Savary’s Houndé South property.
The JVCo would be 65% owned by Savary and 35% owned by Sarama and would govern the JV’s exploration and development activities over an area of 750 km2 in the highly prospective Houndé greenstone belt.
“We are pleased to be finalising the JV agreement with Savary and that the metallurgical testing undertaken has shown primary mineralisation to deliver high recoveries and that appears to be nonrefractory.
“We believe the South Houndé gold belt is a great exploration address and we are highly encouraged by the results of Savary’s recent drill programme and metallurgical testwork. We look forward to working with Savary and advancing our regional interests to the next stage,” Sarama president and CEO Andrew Dinning commented.
Sarama said it was optimistic about the project reaching critical mass to support the development of a mine.