MONTREAL, QUEBEC (FRANKFURT: S1O) is pleased to provide an
update on the feasibility study in progress on its Bakoudou-Magnima
Gold Project located in Gabon, Africa.
The feasibility study performed by Managem on Bakoudou's Zone A
is executed by Reminex, a Moroccan engineering consulting group
specialized in mining projects that has appointed an internal team
to oversee the completion of the project. Certain aspects of the
study, such as the resource calculation, are validated by
independent consultants. Certain particular tasks requiring
specific expertise are also subcontracted. Finally, tests are
executed directly with equipment suppliers to determine certain
operating parameters as well as validate some of the results
obtained by Reminex.
The study is almost completed and the final conclusions should
be available shortly. The objective of the study is the design of
an open-pit mine on Zone A and comprises :
- Resource calculation,
- Metallurgical studies,
- Mine planning,
- Basic engineering for the treatment plant,
- Engineering of required infrastructures,
- Environmental impact study,
- Hydrogeological study,
- Geotechnical study,
- Production planning,
- Evaluation of capital expenditures and operating costs,
- Economic project evaluation,
- Project planning,
- Assessment of human resources, raw materials and
subcontracting requirements necessary for the exploitation of the
project.
Definition drilling - resource calculation
The resource calculation is based on a total of 133 HQ diameter
core holes (ending with an NQ diameter in some cases) for a total
of 8,925m and covering a rectangle with an approximate surface area
of 350x500m over the southern part of the Bakoudou soil anomaly.
Collar elevations range between 514m and 579m for a maximum
difference in height of 65m. All drill holes can be classified
according to two categories :
- 80 core holes executed during the 2004-2005 campaign
supervised by SearchGold for a total of 4,094m drilled. These holes
are drilled to depths varying between 14m and 99m, mostly at 25m
intervals on lines oriented at 227 degrees and established with a
25m line spacing.
- 53 core holes executed during the 2006-2007 campaign
supervised by Managem for a total of 4,831m drilled. These holes
complete the 2004-2005 drilling towards the east, north and south
and were drilled to depths varying between 30m and 250m.
All the 2004-2005 holes have a 70 degrees dip and an azimuth of
N227 degrees. Most of the 2006-2007 holes also have the same
technical parameters but with dips reaching 85 degrees. Hole
BA06-18 is vertical. Hole BA06-31 has a 70 degrees dip and an
azimuth of N47 degrees. Finally, holes BA06-36 and BA06-37 have a
75 degrees dip and an azimuth of N137 degrees.
Reminex uses the Datamine modelization software. The final
resource calculation is in progress and will include the results of
the recent drilling and notably of hole BA06-36 which returned an
intersection of 16.39 g/t Au over 49.50 m. The consulting group
Systemes Geostat International Inc. based in Montreal, Canada is
responsible for the validation of the final resource calculation to
be utilized for the finalization of the feasibility study.
Metallurgy - test work
Initial tests had been realized on samples collected from
several areas of the mineralized body and showed that gravity was
the optimal treatment method. Following these preliminary tests, a
20 ton sample of mineralized material from the oxide zone was
shipped to Managem's research center in Marrakech, Morocco, and
underwent pilot testing to validate the processing method. The
pilot consisted in crushing followed by grinding at 250 micronsm.
The grinded product was then run through Falcon concentrators
followed by Gemini tables to obtain a concentrate on which refining
test work was executed.
The conclusions of these tests are :
- The confirmation that the material can be treated through a
gravity circuit,
- The use of Falcon concentrators allows optimal recovery,
- The improvement in the quality of the concentrates with the
use of Gemini tables,
- The confirmation that the concentrate can be refined and gold
bullion obtained.
A series of additional tests were recently completed following
the observation that the mineralization was extending well into the
fresh rock beyond the saprolite of the oxide zone. These tests
showed that the recovery on the grinded products treated with
Falcon concentrators is similar to the one obtained on the
saprolitic mineralization and vary from 90% to 93%. Tests for work
index and abrasion index determination have been performed by Metso
Minerals York and samples of products grinded at 250 micronsm have
been shipped to Falcon in Canada in order to validate the results
obtained by Managem.
Mining
Following the analysis of the geological data base with the
exploration team, Reminex proceeded with the construction of mine
bloc model using the Vulcan software with the objective to optimize
mining and design a pit to maximize the exploitation of the
geological resources. An update of the bloc model is in progress to
incorporate the most recent drill holes as well as the conclusions
of the geotechnical study performed by Scott Wilson.
A tender has been executed to evaluate the option of
sub-contracting mining activities. In parallel, the dimensioning of
the mining fleet has been executed to evaluate the possibility to
carry out the mining in-house. The evaluation of both mining
scenarios will allow the determination of the optimal exploitation
method for the project.
Treatment plant
Metallurgical test work confirmed that gravity allows a recovery
of 88.25% and a flow sheet as well as matter and metal mass balance
were executed on the basis of the test work. The dimensioning of
the principal equipments has been executed on the basis of a
500,000 t/year capacity and operation of 330 d/year. Budgetary
offers have been received and preliminary layout as well as
drawings of the sub-units have also been executed. The final
financial evaluation (equipments, civil works, steel structures,
steel works...) is in progress with several alternatives being
considered. Specific areas have been reserved in the plant design
to accommodate an eventual increase in capacity, notably at the
level of an additional line of crushing, as well as potential
adaptations of the treatment circuit.
In the light of delays for the supply of certain equipment
(crusher : 18 to 24 months), second hand equipment tenders have
been placed and offers have been received (crushers, mills, ...).
Once the offers have been reviewed, targeted equipment will undergo
inspection visits in order to undergo potential acquisitions to
respect the project milestones.
Infrastructures and external studies
The following various aspects of the project have been completed
:
- Power plant conception,
- Electrical distribution flow sheet,
- Budgetary tendering for the purchase of power plant,
- Tenders for electrical supply of cabinets, cubicles and
electrical erection,
- Dimensioning of administrative buildings,
- Dimensioning of base camp: housing, kitchen, recreation,
showers,
- Estimation of areas requiring stripping,
- Evaluation of site upgrades (road, stripping, fences),
- Evaluation of access to the site (roads and bridges),
- Consultations with Gabonese construction companies,
- Consultations for ready-made housing.
Other studies
- The design and conception of the tailings dam has been
subcontracted to Scott Wilson based in England. A preliminary
report has been received by Managem in December 2007. The final
report will incorporate the recently completed topographic map of
the dam area and will be executed on the basis of the on-going
geotechnical study executed by Scott Wilson.
- The environmental impact study has been subcontracted to the
engineering group Terea based in Gabon. A preliminary report has
been received and the impact study as well as a management and
rehabilitation plan is in the process of being finalized.
- The hydrogeological and hydrological study has been
subcontracted to the engineering group Geopole based in Morocco.
The first phase report has been obtained by Managem. Geopole will
use the geotechnical study by Scott Wilson to obtain the
piezometric data necessary for the finalization of the work.
Philippe Giaro, P.Geol., President and CEO of SearchGold
Resources Inc. and Qualified Person for SearchGold, has reviewed
and approved the content of this release.
In July 2005, SearchGold signed a strategic $4,200,000 joint
venture agreement on the Bakoudou-Magnima Gold Project with
Managem, a successful, established African-based mining company
(www.managem-ona.com). Through its subsidiaries, Managem operates 6
mines in Morocco and was also involved in the development of two
gold mines in West Africa.
In June 2007, SearchGold announced the appointment of SRK
Consulting (Canada) Inc. ("SRK") for an engineering mandate
concerning the assistance for the development of the on-going
feasibility study on Zone A. A site visit was then executed by SRK
and SearchGold's management in Gabon and Morocco in the context of
this mandate.
About SearchGold Resources Inc.
SearchGold Resources is a Canadian-based mining exploration
company whose primary mission is to target, explore and develop
gold deposits in Africa. The expansion strategy executed in 2006
has set the stage for the Company's development in 2007 through
increased activity on the advanced projects, a new acquisition and
the segmentation of its activities to unlock value for its
shareholders. SearchGold's diamond assets were re-organized along
with Mano River Resources Inc., to create an integrated diamond
company called Stellar Diamonds Limited of which SearchGold holds
2.7 million shares. SearchGold's Canadian gold assets were also
re-organized through the creation of Golden Share Mining
Corporation which will focus on exploration principally for gold in
Canada. SearchGold intends to distribute a dividend to its
shareholders as part of the Golden Share transaction.
If you would like to receive press releases via e-mail please
contact: info@searchgold.ca
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Contacts: SearchGold Resources Inc. Philippe Giaro, President
& CEO 32-473-52-30-29 phgiaro@skynet.be SearchGold Resources
Inc. Denis Tremblay, Vice-President 514-866-4224 info@searchgold.ca
www.searchgold.ca CHF Investor Relations Alison Tullis, Account
Manager 416-868-1079 x233 alison@chfir.com
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