West Africa focused gold miner Firefinch (ASX:FFX) reports that it has been granted a mining license over the Finkola permit, which sits adjacent to its Morila Gold Mine in Mali.
Receipt of the 12-year license, situated 23km northwest of the Morila Super Pit, green-lights mining work at the 20,000oz Beledjo-Koting gold deposit and provides development pipeline for additional prospects.
Importantly, no previous mining work has been undertaken at Beledjo-Koting, which will allow for ‘substantial’ quantities of oxide ore to blend with fresh ore from the Morila Super Pit
Speaking on the news, Firefinch Managing Director Dr Michael Anderson said: “The grant of the Permis d’Exploitation for Finkola is another important step in ramping up production at Morila. Beledjo gives us another ore source and importantly provides oxide ore for blending with fresh ore from the Morila Super Pit.”
“Beledjo gives us another ore source and importantly provides oxide ore for blending with fresh ore from the Morila Super Pit”
In accordance with local legislation, Firefinch will be required to transfer the the mining license to a standalone ‘single purpose’ Malian subsidiary company. The State of Mali will retain the right to receive 10% free carried interest in the new entity, and will also have an option to purchase an additional 10% at ‘fair market value’.
The company will operate on a ‘arms length’ basis with Morila, which will see the later enter into commercial agreements to operate and manage mining and haulage work at Beledjo-Koting, along with processing ore through to pouring of doré.
Beledjo-Koting carries Probable Ore Reserves of 0.63 million tonnes @ 0.98g/t Au for 20,000oz contained gold within an Indicated and Inferred Mineral Resource of 0.93 million tonnes @ 1.01g/t Au for 30,000oz.
Location of the Finkola Mining License in relation to satellite deposits and the Morila Super PitThe license includes additional unmined prospects including K2 and K3, where recents drilling has delineated mineralisation in oxide and fresh rock. Further drilling is planned at both prospects during 2022, which will be tasked with defining Mineral Resources and assessing potential to provide mill feed.
In addition, Firefinch will advance other prospects within the license via surface geochemistry and aircore drilling.
Images: Firefinch Limited
