Stellar AfricaGold Inc. Reaches Prefeasibility Stage on B3 and B1 Zones of Balandougou Project in Guinea, West Africa
April 22 2013 - 10:49AM
Marketwired Canada
Mr. Maurice Giroux, President and Chief Executive Officer of Stellar AfricaGold
Inc. (TSX VENTURE:SPX) ("Stellar" or the "Company") and a Qualified Person as
defined in NI 43-101, is pleased to inform the Company's shareholders of the
conclusion of an overall work compilation, interpretation and recommendation
done by AECOM, Stellar's independent consultant on all technical aspect of the
Balandougou Project.
The conclusion of AECOM's report is that the exploration carried out so far on
Balandougou has led to the discovery of two significant ore bodies, namely the
B3 and B1 gold zones. These two structures currently represent the best
opportunity for the joint-venture partners Stellar AfricaGold and UltraGold to
initiate gold production, in order to generate possible positive cash flows and
pursue exploration and evaluation of other valuable targets discovered on the
property.
AECOM recommends a three-phase program, namely a Preliminary Economic
Assessment, a Prefeasibility Study and a Full Feasibility Study that could lead
to a small-scale mining operation. It is important to note that Phase I can be
skipped and the joint-venture partners could decide to proceed immediately with
Phase II, being the Prefeasibility Study.
"We are very pleased with the conclusions of AECOM's report, which pave the way
for an important new phase for Stellar AfricaGold," indicated Mr. Maurice
Giroux. "Pursuant to the recent consolidation of Stellar's capital stock
resulting in a consolidated float of 13,012,430 shares issued and outstanding,
Stellar AfricaGold is in a stronger position to raise the funds needed to carry
out the pre-production phase on the B3 and B1 ore bodies. Furthermore, the
Company intends to keep the pace in its exploration and acquisition efforts.
Geochemistry and geophysical signature of the Solotomo areas shows that B3, B1
and Solotomo pit ore bodies may represent three components of a possible
multi-deposits system. Exploration efforts will be concentrated within a 10
kilometre diameter circle around the B3 ore body. More gold resources
discoveries in this immediate area could add up considerably to the anticipated
mining operation."
The details of the three phase pre-production program recommended by AECOM are
the following
PHASE I: PRELIMINARY ECONOMIC ASSESSMENT (PEA)
The PEA will consist in the following elements:
1. The calculation of an inferred resources category using the current
available trenching and drilling results;
2. A mining plan including:
-- A preliminary open pit design
-- The evaluation of in pit mineral resources, including dilution and
ore losses
-- The determination of an appropriate production rate (tonnes per day)
with the consequent mine life
-- The selection and sizing of the mining equipment required to sustain
the production rate
-- The mine capital cost (manpower, mobile equipment, blasting,
maintenance, etc.);
3. A conceptual preliminary design of the mill facility that will include:
-- The selection and sizing of the milling equipment's required to meet
the mine production rate
-- The mill capital cost
-- The mill operating cost (manpower, reagents, consumables, energy
etc.);
4. A preliminary environmental and social impact assessment;
5. A sensitivity study establishing the influence of a variation in the
main parameters affecting the project's profitability (gold price,
grade, recovery rate, operating cost, capital cost).
Upon positive conclusion of the Preliminary Economic Assessment, AECOM recommend
that the joint-venture partners proceed with Phase II.
PHASE II: PREFEASIBILITY STUDY (PFS)
1. The addition of 3,168 linear metres of RC drilling and 1,736 metres of
trenching to the B1 and B3 ore bodies to define an indicated and
measured type of resource;
2. A mining plan including:
-- A detailed open pit design including the roads and access ramps.
-- A more detailed calculation of the in pit mining reserves. Based on
a mining plan and a technico-economical study, demonstrating that
the mineralization can be mined with a profit, the indicated and
measured resources can be considered, respectively, to be probable
and proven mining reserves;
3. Metallurgical tests will concentrate on the gold recovery from the
lateritic type of ore. The cyanidation kinetics will be documented along
with basic grindability and filtration tests;
4. A detailed design of the mill facility. The mill design will be factual
and based on the results of the metallurgical tests.
Finally, and always being part of AECOM's recommendation, given a positive
conclusion of PFS, the next phase should be a full Feasibility Study.
PHASE III: FEASIBILITY STUDY (FS)
1. The addition of 3,168 linear metres of RC drilling and 2,485 metres of
trenching to B1 and B3 ore bodies to define a measured type of resource;
2. A mining plant including:
-- final design of the open pit based on the results of a geotechnical
and hydrogeological studies
-- Calculation of the in pit mining reserve including a significant
portion of proven reserves.
-- A mining sequence in which the higher grade ore will be extracted
first in order to amortize the capital cost over the shortest time
period;
3. Additional metallurgical testing with the objective of optimizing the
concentration process and the gold recovery. It will also assess the
environmental impact of the process;
4. The final design of mill facility, including the water supply process,
tailings pond management and water recirculation from the tailings pond
to the mill;
5. A complete environmental and social impact study including public
hearings;
6. A financial analysis and a sensitivity study.
The cost of the three pre-production phases of work is estimated as follows:
ESTIMATED COST, PHASE I, II AND III ($US)
----------------------------------------------------------------------------
Preliminary
Economic Prefeasibility Feasibility
COMPONENT Assessment Study Study
----------------------------------------------------------------------------
Trenching Not required $173,600 $248,500
----------------------------------------------------------------------------
RC Drilling Not required $316,800 $316,800
----------------------------------------------------------------------------
Metallurgical Testing Not required $50,000 $50,000
----------------------------------------------------------------------------
Cost of study $175,000 $300,000 $750,000
----------------------------------------------------------------------------
Total estimated cost $175,000 $840,400 $1,365,300
----------------------------------------------------------------------------
Stellar's share of
estimated cost (49%) $85,750 $411,796 $668,997
----------------------------------------------------------------------------
ABOUT THE BALANDOUGOU PROJECT
The Balandougou project in Guinea West Africa is a 49% / 51% joint venture
between Stellar Pacific Ventures and Ultragold Holding based in Denver.
Colorado. The Balandougou property is located 100 kilometres north of Siguiri in
Upper Guinea at the Mali border. It is comprised of four contiguous exploration
licences that cover an extensive 606 km2 located entirely on the West African
Birimien Gold Belt.
To date, 16,000 metres of core and RC drilling have been done on the property.
This work has led to the discovery of three extensive gold mineralized
structures, namely, the Solotomo, B3 and B1 zones. The following tables show the
best drill intersection obtained so far:
BEST RC INTERSECTION ON B1 ZONE
----------------------------------------------------------------------------
HOLE # FROM TO INTERSECTION
----------------------------------------------------------------------------
(m) (m) (gr Aum)
----------------------------------------------------------------------------
B1-11-04 0 29 0.90 gr Au30 m
----------------------------------------------------------------------------
B1-11-05 0 66 0.58 gr Au66 m
----------------------------------------------------------------------------
B1-11-06 0 66 0.28 gr Au66 m
----------------------------------------------------------------------------
B1-11-09 42 44 5.25 gr Au2 m
----------------------------------------------------------------------------
B1-11-10 6 8 2.46 gr Au2 m
56 60 0.5 gr Au4 m
----------------------------------------------------------------------------
B1-11-11 10 16 1.0 gr Au6 m
52 62 1.46 gr Au10 m
----------------------------------------------------------------------------
B1-11-12 1 48 1.64gr Au47 m
Incl. 13 28 3.15 gr Au15 m
----------------------------------------------------------------------------
B1-11-13 0 5 0.92 gr Au5 m
----------------------------------------------------------------------------
B1-11-20 0 4 0.98 gr Au4 m
----------------------------------------------------------------------------
B1-11-21 25 26 1.29 gr Au1 m
36 45 1.0 gr Au9 m
----------------------------------------------------------------------------
B1-12-03 2 4 0.57 gr Au/2m
4 6 4.08 gr Au/2m
----------------------------------------------------------------------------
B1-12-07 12 22 1.24 g Au/10m
----------------------------------------------------------------------------
B1-12-10 16 18 3.97 g Au/2m
----------------------------------------------------------------------------
BEST RC INTERSECTION ON B3 ZONE
----------------------------------------------------------------------------
Hole# from to INTERSECTION
----------------------------------------------------------------------------
(m) (m) (gr Aum)
----------------------------------------------------------------------------
B3-11-02 1 3 1.24 gr Au2 m
----------------------------------------------------------------------------
B3-11-05 39 59 2.0 gr Au19 m
----------------------------------------------------------------------------
Incl. 40 46 3.44 gr Au6 m
----------------------------------------------------------------------------
B3-11-06 44 47 2.48 gr Au3 m
----------------------------------------------------------------------------
Incl. 45 46 6.79 gr Au1 m
----------------------------------------------------------------------------
B3-11-08 0 12 2.27 gr Au12 m
----------------------------------------------------------------------------
Incl. 0 5 3.10 gr Au5 m
----------------------------------------------------------------------------
9 10 6.44 gr Au1 m
----------------------------------------------------------------------------
B3-11-09 0 8 1.26 gr Au8 m
----------------------------------------------------------------------------
Incl. 3 4 5.48 gr Au1 m
----------------------------------------------------------------------------
7 8 3.32 gr Au1 m
----------------------------------------------------------------------------
B3-11-12 1 30 1.15 gr Au29 m
----------------------------------------------------------------------------
Incl. 24 29 2.5 gr Au5 m
----------------------------------------------------------------------------
B3-11-13 0 10 0.89 gr Au10 m
----------------------------------------------------------------------------
Incl. 9 10 3.55 gr Au1 m
----------------------------------------------------------------------------
B3-11-14 5 6 2.83 gr Au1 m
----------------------------------------------------------------------------
33 34 1.52 gr Au1 m
----------------------------------------------------------------------------
B3-11-18 3 9 2.20 gr Au6 m
----------------------------------------------------------------------------
B3-11-21 11 12 1.89 gr Au6 m
----------------------------------------------------------------------------
B3-11-22 33 37 1.13 gr Au4 m
----------------------------------------------------------------------------
53 64 1.27 gr Au12 m
----------------------------------------------------------------------------
Incl. 60 61 9.97 gr Au1 m
----------------------------------------------------------------------------
B3-11-23 7 22 1.63 gr Au15 m
----------------------------------------------------------------------------
Incl. 11 16 2.82 gr Au5 m
----------------------------------------------------------------------------
B3-11-24 0 4 4.22 gr Au4 m
----------------------------------------------------------------------------
Incl. 0 1 15.8 gr Au1 m
----------------------------------------------------------------------------
40 43 1.50 gr Au3 m
----------------------------------------------------------------------------
B3-11-26 0 35 1.47 gr Au35 m
----------------------------------------------------------------------------
Incl. 9 11 2.52 gr Au2 m
----------------------------------------------------------------------------
17 24 2.72 gr Au7 m
----------------------------------------------------------------------------
28 30 4.09 gr Au2 m
----------------------------------------------------------------------------
33 35 5.16 gr Au2 m
----------------------------------------------------------------------------
55 58 5.35 gr Au2 m
----------------------------------------------------------------------------
B3-11-27 16 26 2.0 gr Au10 m
----------------------------------------------------------------------------
Incl. 22 26 4.24 gr Au4 m
----------------------------------------------------------------------------
B3-11-30 9 23 2.76 gr Au14 m
----------------------------------------------------------------------------
Incl. 9 12 5.0 gr Au3 m
----------------------------------------------------------------------------
16 20 4.54 gr Au4 m
----------------------------------------------------------------------------
56 61 3.51 gr Au5 m
----------------------------------------------------------------------------
B3-11-31 36 43 4.1 gr Au7 m
----------------------------------------------------------------------------
52 53 16.5 gr Au1 m
----------------------------------------------------------------------------
56 57 7.13 gr Au1 m
----------------------------------------------------------------------------
63 66 3.04 gr Au3 m
----------------------------------------------------------------------------
B3-11-33 12 21 4.41 gr Au9 m
----------------------------------------------------------------------------
Incl. 14 17 6.0 gr Au3 m
----------------------------------------------------------------------------
B3-11-36 27 29 1.23 gr Au2 m
----------------------------------------------------------------------------
B3-11-43 18 19 2.61 gr Au1 m
----------------------------------------------------------------------------
B3-12-05 42 44 1.73 gr Au 2 m
44 46 0.47 gr Au 2 m
52 54 0.96 gr Au 2 m
54 56 1.18 gr Au 2 m
62 64 1.24 gr Au 2 m
----------------------------------------------------------------------------
BEST RC INTERSECTION ON SOLOTOMO PIT ZONE
----------------------------------------------------------------------------
Section Hole # Grade g/t Au Interval
----------------------------------------------------------------------------
250 N 1.84 g Au/4.0 m 8 m to 12 m
SO 17 1.49 g Au/4.0 m 20 m to 24 m
----------------------------------------------------------------------------
200 N SO 14 0.49 g Au/40.0 m 0 to 40.0 m
----------------------------------------------------------------------------
SO 15 1.66 g Au/8.0 m 4 to 12 m
----------------------------------------------------------------------------
SO 16 1.30 g Au/8.0 m 52 to 60 m
----------------------------------------------------------------------------
150 N 0.6 g Au/8.0 m 4 to 12 m
SO 11 1.74 g Au/20.0 m 32 to 52 m
including 3.53 g Au/8.0 m 32 to 40 m
----------------------------------------------------------------------------
SO 12 0.98 g Au/25 m 16 to 41 m
----------------------------------------------------------------------------
100N SO 08 1.20 g Au/4 m 34 to 40 m
----------------------------------------------------------------------------
SO 10 1.23 g Au/4 m 76 to 80 m
----------------------------------------------------------------------------
050N SO 05 3.47 g Au/4.0 m 74 to 78 m
----------------------------------------------------------------------------
1.61 g Au/4.0 m 4 to 8 m
SO 06 1.80 g Au/8.0 m 16 to 28 m
----------------------------------------------------------------------------
000 SO 01 1.20 g Au/4.0 m 4 to 8 m
----------------------------------------------------------------------------
SO 02 1.09 g Au/4.0 m 28 to 32 m
----------------------------------------------------------------------------
For further details on BALANDOUGOU Project, please consult:
http://www.stellarafricagold.com/en/english/balandougou-project-en.html
ABOUT STELLAR AFRICAGOLD INC.
Stellar AfricaGold Inc., formerly Stellar Pacific Ventures Inc., is a recently
consolidated Canadian mine exploration company based in Montreal, Quebec, with
operations in West Africa. The Company is currently developing the promising
gold potential of the Balandougou property in Guinea, which is at an advanced
exploration stage, as well as the Namarana project in Mali. The exploration
licences held by Stellar and its partners cover 1,100 km2 located entirely on
the West African Birimiam Gold Belt.
Stellar also holds a significant interest in TomaGold Corporation Inc., a
Canadian mining company active in the exploration of gold properties in
Chibougamau area, Northern Quebec.
FORWARD LOOKING STATEMENTS
This document contains forward-looking statements concerning future development
contingent upon uncertain factors including financing revenues, progress and
results of activities and operations, and environmental factors that are in some
cases considered forward-looking statements. These statements are based on
numerous assumptions including commodity prices, exploration results, resource
availability, and other assumptions that management believes are reasonable
based on currently available information, however management's assumptions and
the Company's future performance are subject to a wide range of business risks
and there is no assurance that these goals and projections can or will be met.
The technical content of this press release has been reviewed and approved by
Mr. Maurice Giroux, a Qualified Person as defined in NI 43-101.
FOR FURTHER INFORMATION PLEASE CONTACT:
Maurice Giroux
President and CEO
Stellar AfricaGold Inc.
514-866-6299
514-866-8096 (FAX)
Ress.stellar@bellnet.ca
www.stellarAfricaGold.com
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