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On the non-drilling front significant developments on key targets include:
-- Receipt of assays for detailed termite mound sampling over the Soreto and Diabougou prospects. This work highlighted that the artisanal mine workings in the area which extend for over one kilometre in strike length are part of a 4 km long gold anomaly coincident with a NE trending shear system.-- Receipt of multi-element geochemistry for detailed termite mound sampling over the Nienyenko prospect. This work highlighted an extensive alteration-related multi-element footprint centred on the known gold anomalies and mineralization previously identified in trenches, thus significantly enlarging the potential size of the prospect.-- First pass data collection was completed at Garaboureya, consisting of termite mound geochemistry, mapping, rock chip sampling and acquisition of high-resolution aeromagnetics. This data resulted in the delineation of a significant gold anomaly coincident with a permissive structural setting. Interpretation work is continuing to define the drilling testing program on this target for 2013.
The program for 2013 has been budgeted and will focus on fast-tracking work on our current priority targets at Nienyenko, Soreto, Diabougou, Tourokhoto-Marougou and Saiensoutou. Other targets will be followed up as work progresses on the RLP. A minimum budget of $20 million is allocated for the combined exploration programs on the RLP and ML. Additional funding is available and will be allocated on a priority basis for prospects with clear potential for reserves definition.
RESERVES AND RESOURCES
The proven and probable mineral reserves for the Sabodala and Niakafiri deposits were based on the Measured and Indicated resources that fall within the designed pits. The bases for the reserves are consistent with the Canadian Securities Administrators National Instrument 43-101 ("NI 43-101") report. The design for the open pit limits, related phasing and long term planning for the Sabodala open pit were updated from assay and drilling results as at August 20, 2012. Updated resource block models were completed for Sabodala and Gora deposits.
The updated Sabodala pit design is larger than the 2011 design. The new design uses similar geotechnical parameters as in past designs and uses a slightly higher gold price for the Lerchs-Grossman (LG) pit optimization routine to reflect the three year trailing average gold price. Mining phases were designed similarly to the previous designs, where the mine sequencing is based on accessing the high grade MFE through successive phases to balance waste stripping and optimize cash flow.
The updated Gora pit design and reserve estimate was based on the LG pit optimizer and geotechnical pit wall assumptions similar to the Sabodala pit, however, a higher cut-off was used to reflect the ore haul to Sabodala. Dilution and ore recovery estimates were based on an estimated minimum mine width of 4 metres with separability optimised for 5 metre benches in ore and 10 metres benches in waste.
The Niakafiri pit design remains unchanged from 2011.
The total proven and probable mineral reserves at December 3, 2012 are set forth in Table 2 below.
Table 1: Resources Estimate
---------------------------------------------------------------------------- Measured and Measured Indicated Indicated --------------------------------------------------------------- Tonnes Grade Au Tonnes Grade Au Tonnes Grade Au (Mt) (g/t) (Moz) (Mt) (g/t) (Moz) (Mt) (g/t) (Moz)----------------------------------------------------------------------------Sabodala 28.06 1.24 1.12 31.47 0.96 0.97 59.53 1.09 2.09Sutuba 0.50 1.27 0.02 0.50 1.27 0.02Niakafiri 0.30 1.74 0.02 10.50 1.10 0.37 10.70 1.12 0.39Gora 0.49 5.27 0.08 1.84 4.93 0.29 2.32 5.00 0.37----------------------------------------------------------------------------Total 28.85 1.32 1.22 44.31 1.16 1.65 73.05 1.22 2.87--------------------------------------------------------------------------------------------------------------------------------------------------------Area Inferred ------------------------------ Tonnes Grade Au (Mt) g/t Moz----------------------------------------------------------------------------Sabodala 12.36 0.87 0.35Niakafiri 7.20 0.88 0.21Niakafiri West 7.10 0.82 0.19Soukhoto 0.60 1.32 0.02Gora 0.21 3.38 0.02Diadiako 2.90 1.27 0.12Majiva 2.60 0.64 0.05Masato 19.18 1.15 0.71----------------------------------------------------------------------------Total 52.15 1.00 1.67----------------------------------------------------------------------------
