Name and Location
Fekola gold project, Mali.

Client
Papillon Resources.

Project Description
A prefeasibility study (PFS) completed on the Fekola project has confirmed a large-scale, low-cost and robust project.

The project hosts a mineral resource of 54.97-million tonnes, grading 2.38 g/t gold.

Envisaged is an openpit mine and conventional carbon-in-leach processing circuit to process four-million tonnes a year during steady state production.

Average production of 306 000 oz/y of gold is expected over the life of the mine, which is estimated at nine years.

Contract miners will be used, thus eliminating the need for capital expenditure on fleet.

Value
The estimated capex for the mine, process plant and associated infrastructure is $254-million.

Duration
Not stated.

Latest Developments
Papillon is undertaking a review process before the award of the definitive feasibility study (DFS).

The company’s 2014 drilling programme started in November this year.

The drilling programme, which comprises the testing of several targets along strike from and parallel to the Fekola Deposit, is focussed on developing new high-grade openpit opportunities close to the current planned processing infrastructure.

The 2013 drilling programme, which concluded in June this year and coincided with the onset of the wet season in Mali, comprised more than 500 drill holes and 85 000 m of diamond and reverse circulation drilling. Most of this drilling was focussed on and around the Fekola mineral resource estimate area, successfully extending the deposit to the north, and some shallow testing along the Fekola corridor.

The results from this drilling programme were incorporated into the September mineral resource estimate update, which resulted in a 22% increase to 5.15-million ounces at an average grade of 2.35 g/t gold, including 90% within the measured and indicated resource categories.

Work has continued on identifying key areas for improvement from the PFS, before starting the DFS.

Areas of focus include incorporating the new mineral resource estimate into mining schedules, improved infrastructure locations and site layout, as well as a further metallurgical and communition testwork programme, all aimed at further reducing capital and operating costs.

The DFS is scheduled to start in the first quarter of 2014, following completion of the current metallurgical testwork programme.

Key Contracts and Suppliers
Not stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Papillon Resources, tel +61 8 9222 5400, fax +61 8 9322 6558 or email info@papillonresources.com.