Goldbelt Acquires Barrick’s West African Au Projects


Drilling activity at Goldbelt Resources' Inata property in Burkina Faso.
Goldbelt Resources Ltd. announced in October that it had concluded an agreement to acquire all of Barrick Gold’s West African gold projects in Guinea, Mali and Burkina Faso. The agreement, according to Toronto, Canada-based Goldbelt, gives it the opportunity to capitalize on Barrick’s previous gold exploration efforts in this region of West Africa. The assets include two exploration licenses in Guinea, nine exploration licenses and applications in Mali and seven exploration licenses in Burkina Faso.

Goldbelt said it has been working closely with the Department of Mines and Energy and other government departments in Burkina Faso in bringing its flagship Inata gold mine in the north of the country into production. On Oct. 4, Goldbelt announced the results of the final feasibility study for Inata which was coordinated and compiled by GBM Minerals Engineering Consultants of London, England. The study outlines a 2.25-mt/y mill throughput utilizing a cyanide-in-leach process plant and cash operating costs of $336/oz. The project will have a seven year mine life, initial capital cost estimated at $77 million and sustaining capital costs of $10.8 million. Reserves are estimated to contain 944,000 oz Au.

Goldbelt will begin definition drilling on the Kari project in southwest Burkina Faso where Barrick has conducted exploration on a 4-km-long gold-in-soil anomaly, and where two reverse circulation drill holes returned promising results These two drill holes were drilled on the same fence by Barrick and tested the largest (400 m long x 50 m wide) of a number of artisanal pits that occur in the southern half of the 4-km anomaly.

The agreement also gives Goldbelt 130 km of continuous strike-length of the Houndé Greenstone Belt where Goldbelt has already outlined a number of gold occurrences (Kari Pompe, Douhoun and Grand Espoir).

Goldbelt said it will commit to completing exploration programs in each country over a four-year period. Barrick has the option to claw-back for up to 75% interest in any of its projects at feasibility where a continuous +3-million-oz gold deposit is discovered and developed by Goldbelt by reimbursing Goldbelt a multiple of the exploration expenditure. Should Barrick not exercise its claw-back option, Barrick will retain a 2% NSR.

In addition, Barrick has the option to claw-back a 25% interest in any additional project at feasibility where a +3-millionoz resource is discovered that is acquired within an 80-km radius of any existing project in any of the three countries by reimbursing Goldbelt 100% of Goldbelt’s exploration expenditure. Should Barrick not exercise its back in option under this situation, no NSR is applicable.

As featured in Womp 07 Vol 8 - www.womp-int.com