IM 2016 June 2016 | Page 13

PROJECT FOCUS - FAST GOLD_proof 25/05/2016 07:18 Page 3 PROJECT FOCUS Exploration drilling at Kossanto Cashflow from Matala will allow Alecto to explore more in Zambia and progress prospects in Mali, Burkina Faso and Mauritania. As Jones said in March about Matala and Dunrobin, “our team has worked swiftly to understand the full potential of these deposits and our goal of Alecto becoming a medium term cash producer is becoming increasingly achievable.” The historic Matala and Dunrobin gold mines have, in aggregate, a 760,000 oz Au JORC Code compliant resource estimate in the Measured, Indicated and Inferred categories at an average grade of 2.3 g/t Au. In Mali, the Kossanto East project has an inferred JORC Code compliant resource estimate of 6.72 Mt grading at 1.14 g/t Au for an aggregate of 247,000 oz gold with a cutoff grade of 0.5 g/t Au. This is currently the subject of a co-operation agreement with TSX listed Desert Gold to evaluate the potential to jointly develop each company’s neighbouring projects into production. The Kossanto West project is subject to a joint venture agreement with Randgold Resources (Mali) Ltd. Alecto also owns the Kerboulé project, located in the highly prospective Birimian-age Djibo gold belt in northern Burkina Faso, as well as the wholly owned Wad Amour IOCG project in Mauritania which is at an exploration stage. Come and visit us at booth #4631 September 26th - 28th, 2016 Providing full service mining solutions and innovation around the world for over 50 years. Enter Randgold In February, Alecto Minerals’ wholly owned subsidiary Caracal Gold Mali entered into a joint venture agreement with Randgold Resources (Mali) Ltd for the exploration and development of Alecto’s 137 km2 Kossanto West gold project in western Mali, comprising the Kobokoto Est and Koussikoto exploration permits. Highlights: n Joint Venture, for the exploration and development of Kossanto West, is in line with Alecto’s strategy to retain exposure to its African gold exploration portfolio and upside generated whilst minimising exploration and development spend n On completion of the Joint Venture (Randgold to fund all costs up to and including the completion of a prefeasibility study on the project), Randgold will hold a 65% and Alecto will retain a 35% participating interest in the permits. The initial work program includes further geological and mapping of Kossanto West with potential follow up pitting and trenching and reconnaissance drilling, anticipated to be undertaken by Randgold in the first 12 months. Kossanto East, where Alecto has reported positive economics from an internal scoping study, with the project subject to a collaboration agreement with Desert Gold, is not included in the Joint Venture and remains wholly owned and operated by Alecto At the time of the Randgold agreement, Jones commented: “We are EXPERIENCE • • • • Shaft Sinking Mine Development Contract Mining Raiseboring AFRICA | ASIA | AUSTRALIA EUROPE | NORTH AMERICA SOUTH AMERICA Consider it done. • • • • Raise Mining Underground Construction Engineering & Technical Services Specialty Services Mining Contractors and Engineers redpathmining.com JUNE 2016 | International Mining 11