Resolute Mining Ltd (ASX:RSG) has received drill results from projects that were recently added to its West African portfolio through the acquisition of Toro Gold.
The results confirm the opportunity to expand Resolute’s gold inventory through exploration on the newly acquired land package.
Highlights included diamond drilling at the producing Mako Gold Mine in Senegal which confirmed a potential gold lode and the north-eastern end of the open pit.
Mako produced 44,191 ounces at an all-in sustaining cost (AISC) of US$716 per ounce in the September 2019 quarter.
Exploration is also targeting satellite resources within trucking distance to Mako which will provide mill feed for Mako beyond the existing mine life.
The Tombo Prospect located 15 kilometres from Mako is the most advanced prospect with gold mineralisation identified over a 1 kilometre strike length.
Follow-up work is planned to commence in January 2020 with programs of RC and diamond drilling.
Mako is a low-cost gold mine
Resolute’s managing director and CEO John Welborn said: “The Mako Gold Mine has already outperformed for Resolute and positive exploration results are further confirmation of value creation.
“The drilling results indicate strong potential to increase open pit gold inventory at Mako which will extend the life of our new high quality, low cost operation.
“We are delighted to be operating successfully in Senegal and we are actively seeking to expand our tenement package to include new high-quality exploration prospects.
Exploring at multiple projects in West Africa
“A highly prospective and expansive exploration portfolio covering over 2,800 square kilometres across Senegal, Côte d’Ivoire and Guinea was acquired as part of the Toro Gold transaction.
“In addition to the immediate opportunities for mine life extension at Mako, Resolute has identified significant additional opportunities to source oxide mill feed for Mako within trucking distance of the existing processing plant.
“We are investigating possible joint ventures and acquisitions of highly prospective ground in eastern Senegal.
“Resolute is committed to creating value through successful exploration.
“We are actively progressing exploration activities in Senegal, Côte d’Ivoire, and Mali seeking to add low-cost, high-quality ounces to our portfolio."