JOHANNESBURG (miningweekly.com) – TSX-V-listed True Gold has been closely monitoring the changing landscape in Burkina Faso, particularly near its project area, over the past six weeks, developing a much clearer understanding of certain of the perceptions and concerns of communities related to its Karma gold project.
On January 14, the Vancouver-based miner experienced an impromptu protest that damaged certain property and assets, while in December the miner temporarily halted part of the construction activities at its $132-million Karma project owing to a "disturbance" in a local community.
True Gold executive chairperson Dr Mark O'Dea said on Tuesday that the company was currently taking steps to refocus its efforts in Burkina Faso by re-engaging with the local community to tackle concerns and put Karma in a position to move forward.
“We are making progress, but the state of affairs in Burkina Faso remains fluid as we reconcile a number of competing interests within some of the nearby villages.”
True Gold would continue to liaise with government and representatives of the local community to gain additional clarity on the local concerns and the instability affecting the country's mining industry and economy.
Given the current situation, the company noted that it was not able to provide a definitive update on any potential impact recent unrest could have had on the project timeline.
It was, however, working to compile information to provide such an update “as expeditiously as possible”.
KARMA OPERATIONAL UPDATE
The company stressed that all its employees were safe and the sites and property were secure, following the protest earlier this month.
“True Gold is working closely with all levels of government, including the central government in Burkina Faso, local authorities and representatives from local communities to ensure continued safety and security.”
The company said that owing to the protest certain equipment, supplies and one office building suffered varying degrees of damage, the extent of which it was in the process of assessing. True Gold was working with consultants and suppliers to ascertain the value of the damage. Based on available information, it was currently estimated that the cost associated with the damage was in the range of $4-million to $8-million.
True Gold carried a number of insurance policies and was working with its insurance providers to formally assess the quantum and coverage.
The company was actively working with its operations team and principal contractor Senet on a plan to mitigate any project delays.
BOARD CHANGES
True Gold also announced on Tuesday that O'Dea had been appointed president and CEO on an interim basis, replacing Dwayne Melrose.
True Gold retained Korn Ferry to lead the search for a permanent CEO.
The company extended its thanks to Melrose for his contribution and wished him well in his future endeavours.