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Golden Rim declares 185 000 oz maiden resource at Burkina Faso project

5th February 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) - Junior Golden Rim Resources has reported a maiden mineral resource estimate of 185 000 oz of gold at the Netiana Lodes, which forms part of its Balogo project, in Burkina Faso.

“The gold resource on the Netiana Lodes contains high grades, a near-surface position and excellent metallurgical recoveries to support our objective of developing an openpit mine and processing operation,” said Golden Rim MD Craig Mackay.

Preliminary results from the scoping study, which was due at the end of February, also indicated that an openpit development of the Netiana Lodes could deliver a net present value of A$45.7-million, and an internal rate of return of nearly 100%.

The capital expenditure for the Netiana Lodes project had been estimated at some A$38.8-million, and would fund a new 250 000 t/y plant.  The project was expected to produce first gold by the second half of 2014, and would have a mine life of some two years.

“The preliminary scoping study results are exciting and suggest a mining operation on the Netiana Lodes would be very robust,” said Mackay.

“Based on the current resource alone, the mine could produce revenues for Golden Rim in excess of A$200-million. As we now move to test target areas along strike from the Netiana Lodes, we believe the potential to outline satellite gold resources and expand the mine life is very high,” he added.

Golden Rim said on Tuesday that resource definition at the Netiana Lodes had been the focus for recent exploration activity at the Balogo project; however, the miner noted that a number of significant exploration targets required further evaluation.

The scoping study for the Netiana Lodes would be completed by the end of February this year, after which Golden Rim would proceed directly to a definitive feasibility study.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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