Searchgold now in with Managem at Bakoudou, Gabon
[ I'd call this a plus for Searchgold. FL ]
Searchgold starts up Bakoudou work program
2005-10-05 10:39 ET - News Release
Mr. Maurice Giroux reports
SEARCHGOLD ANNOUNCES THE RESUMPTION OF WORK IN GABON FOLLOWING THE SIGNATURE OF A CDN $ 4,200,000 DEAL WITH MANAGEM
Searchgold Resources Inc. has resumed the work program on its Bakoudou gold project located in Gabon, Africa.
In July, 2005, Searchgold signed a strategic $4.2-million joint venture agreement on the Bakoudou gold project with Managem, a successful, established African-based mining company. Through its subsidiaries, Managem, the mining branch of the powerful ONA (Omnium Nord Africain), operates six mines in Morocco and was also involved in the development of two gold mines in West Africa, the Kiniero mine in Guinea and the recently commissioned Samira Hill mine in Niger. These two mines are operated by Semafo, a Canadian gold mining company operating in West Africa.
Managem, looking to expand its international activities as well as its gold reserves in West Africa, was attracted to the Bakoudou project by the solidity of the continuing feasibility study results as well as of the potential to significantly increase Bakoudou's resource base. While ensuring proper financing to advance the project without significant shareholder dilution and guaranteeing financing capacity for mine construction, this partnership allows Searchgold to concentrate on the acquisition of additional solid projects and the development of its other existing properties.
The Bakoudou gold project encompasses the 2,300-square-kilometre Magnima prospecting licence and the 24-square-kilometre Bakoudou exploitation permit. Zone A, Searchgold's first advanced target, sits at the southern extremity of a three-kilometre, northwest-trending gold-bearing corridor and contains an oxide-sulphide measured and indicated resource totalling 277,380 ounces of gold (2.1 million metric tonnes at a grade of 2.45 grams per tonne gold in oxide and 570,000 metric tonnes at a grade of 6.11 g/t gold in sulphide -- Met-Chem scoping study).
Managem will be the project operator and exploration and development programs will be determined jointly by both Searchgold and Managem through a four-member management committee composed of two members of each party.
In line with Searchgold's corporate objectives to achieve producer status while maximizing the blue sky potential of its properties, the current program is designed to fast-track a production decision on an optimized resource estimate while immediately testing zone A's proximal targets. The $3-million in exploration and development funds to be provided by Managem over two years will therefore be allocated toward three objectives:
* resource optimization and engineering studies to finalize a bankable feasibility study;
* detailed exploration of proximal targets to expand the resource base; and
* regional exploration of the Magnima permit.
Meanwhile, Searchgold is actively reviewing potential acquisitions in Africa. Furthermore, a work program has been established for the Lac Fortune and Lac Chevrier gold exploration projects in Quebec and is due to start shortly. Further details on these developments will be provided in coming press releases.
AI
