Hunting High Grade Gold Deposits in West Africa
In 2017, we saw the announcement of many substantial gold discoveries in West Africa. The region's gold extraction industries are now enjoying some time in the sun, with a pick-up in mining investment last year - leading to several new mines coming online in the region, and with a significant number of additional projects now in the feasibility stage.
The gold mined in the region predominantly comes from Birimian greenstone belts.
In Côte d'Ivoire and Burkina Faso alone, more than 80 million ounces of gold have been discovered in Birimian greenstone in the past few decades; leading to the construction of 13 mines, with 2 under construction and a further 5 with completed feasibility studies.
This is a region that has historically been permeated with artisanal miners (independent, subsistence miners, mostly using hand tools), who in many cases have been able to extract gold from at or just beneath the surface.
Now it seems that the large, international mining companies are taking a stronger notice of the region, following the artisanal miners in looking for shallow, high-grade gold targets.
Enter Mako Gold - named after the fastest shark in the ocean, this gold explorer is seeking to quickly identify and secure its prey - large, economic gold deposits in West Africa. The company, which is seeking an ASX listing, already has a portfolio of three highly prospective projects in Côte d'Ivoire and Burkina Faso.
The company's projects total 733.2km2; all projects have confirmed high-grade gold rock chip samples, as well as extensive artisanal mining sites.
The presence of artisanal mining was a deliberate criterion from management, as artisanal miners usually only process rocks where they can visually see gold, indicating a potential for high-grade deposits.
Côte d'Ivoire and Burkina Faso, which host Mako's projects are considered supportive of mining. Ten gold mines entering production in Burkina Faso in the past 12 years, whilst Côte d'Ivoire is considered one of West Africa's best developed countries, with excellent infrastructure including a substantial road system.
Mako is led by an experienced team, including Peter and Ann Ledwidge, who previously selected and secured all the Côte d'Ivoire and Burkina Faso projects for Orbis Gold, leading to three gold discoveries, two of which were advanced to the resource stage totalling over 2.6 million ounces. The discoveries propelled Orbis gold's capitalisation, eventuating in its hostile takeover by Canadian miner SEMAFO for around $AU180 million.
Peter and Ann are joined by other colleagues from Orbis, and have also added some new talent. They are looking to set-up a similar West-African gold exploration vehicle. They have already received a firm commitment of a $2 million investment from ASX miner Resolute Mining Limited (RSG.ASX) as part of the IPO.
Mako gold is raising $AU5,000,000-6,000,000 under their IPO. This will leave them an indicative market capitalisation of $AU14,890,020 - $AU15,890,020. Subscribers in the IPO will also receive a listed option for every two shares they purchase.
If you are interested in hearing more about Mako Gold, contact an OzFinancial advisor on 03 8080 5795.
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