Desert Gold Ventures Inc. (“Desert Gold” or “the Company”) (TSX.V: DAU) October 20, 2015 is pleased to provide the following update regarding its operations in Mali.
- Further to the co-operation agreement entered into with Alecto Minerals (LSE: ALO) (“Alecto”), as announced on 9 March 2015, to assess the potential for jointly developing their respective neighbouring gold prospects in Mali (the ‘Co-operation Agreement’), the Company and Alecto have completed an internal study which envisions a low-cost gold heap leach operation combining Alecto’s Kossanto East Gold Project and Desert Gold’s Farabantourou Gold Prospect (“Farabantourou”) (the “Study”). The Study is based on the known gold mineralization on the respective permits, namely Gourbassi East (‘GBRE’) (JORC) and Gourbassi West (‘GBRW’) (JORC) within Alecto’s Farikounda Gold Permit (“Farikounda”) which contains the Kossanto East Gold Project (‘Kossanto East’) and the Barani East prospect within Desert Gold’s Farabantourou Gold Permit (‘Farabantourou’). The results of the Study plan for the joint development of these prospects through heap leaching with a shared mining fleet and mobile crusher with a central gold recovery plant. The respective parties are very encouraged by the results of the Study and are therefore advancing discussions towards the finalization of a definitive joint venture agreement. For additional information please review the Alecto Minerals press release dated September 29, 2015.
- Further to the press release dated October 5, 2015, the Company intends to amend the report titled "A Technical Report on the Barani East Prospect, Kenieba District, Western Mali", dated September 16, 2014, (the "Amended Report") to be in compliance with NI 43-101 and to better reflect the intended development plan of Barani East. The Company intends to file this report within 60 days at which point it will be available on SEDAR and on the Company’s website (www.desertgold.ca).
- On September 6, 2015 the Company received official notice from the Direction Nationale de la Géologie et des Mines (DNGM), Mali, that its Ségala-Ouest Permit was successfully renewed for another two year term. The exploration permit will now expire on November 23, 2017, at which time the Company will seek to convert the exploration license into an exploitation license. The Ségala-Ouest permit is situated in the mining district of Kéniéba, West Mali, and is surrounded by several mines. West of the property are Randgold’s LouloGounkoto complex of mines and, to the east, Endeavour’s Tabakoto and Ségala mines. Endeavour’s Kofi and B2Gold’s Fekola projects, soon to come into production, are located north and south of the permit, respectively. Exploration to date at Ségala Ouest includes a blanket cover of the permit with soil geochemistry. This work outlined a broad anomalous zone (2 to 3 km) traversing the property from the SE boundary to the NW boundary. Ground geophysical surveys, trenching and drilling were confined to the northern parts of the permit. In the south of the permit, a significant artisanal mining operation exploits a quartz vein system to depths of 40m. The site is nearby the village of Baroya. Future work will focus on evaluating this section of the permit.
- The Company is also pleased to announce that it is now in possession of a drill rig; a Hydracore 2000. The rig is man portable and capable of diamond core drilling. Currently the rig is being serviced for regular maintenance before deployment later this year at the Company’s Ségala-Ouest permit where it intends to conduct an extensive diamond drill program in the Southern area of the permit. The acquisition of this drill rig will allow the Company more flexibility in terms of its exploration programs and is a more economical alternative to retaining independent drill contractors.
- The Company is currenlty completeling the first phase of a intended 3 phase exploration program for its Ségala-Ouest permit.
- A comprehensive desktop study of all previous work on the property. This will be the basis for the up-coming field work.
- Because of a lack of outcrop the company anticipates an intensive program of long trenching in key areas, including sites of known mineralization, in the southern parts of the permit. Particularly, around the Baroya artisanal mine. Trenches will be mapped and sampled for geochemical analyses.
- Trench results will guide a diamond drill program. The company has budgeted a minimum of 15 drill holes to a maximum depth of 150 meters. Additional drilling will be contingent on successful results from the initial field work.
Figure 1. Locality plan of Ségala-Ouest in relation to the neighbouring mines. Infill colours are relative soil geochemical values: dark blue colors, background below 30 ppb Au; warm colors, reflect the spread of anomalous values. Cyan colored arrows point to extensive artisanal mining activity
Shaun Dykes, M.Sc. (Eng); P.Geo (#20044), a Qualified Person as defined in NI 43-101, is responsible for the review of all scientific and technical information contained in this release.
ON BEHALF OF THE BOARD
Chief Executive Officer
+1 (604) 357 – 4764
For further information please visit our website www.desertgold.ca or information available on www.SEDAR.com under the company’s profile.
This news release contains forward-looking statements respecting the Company's ability to successfully obtain an exploitation license for its Byumba permit. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements, including the inability of the Company to successfully complete and obtain the necessary permits to develop its operations. These uncertainties and risks include, but are not limited to, the strength of the capital markets, permitting risk, the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; and the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with mining operations. Risks and uncertainties about the Company's business are more fully discussed in the company's disclosure materials filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. The Company assumes no obligation to update any forwardlooking statement or to update the reasons why actual results could differ from such statements unless required by law.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the united states. The securities described herein have not been and will not be registered under the united states securities act of 1933, as amended, and may not be offered or sold in the united states or to the account or benefit of a u.s. person absent an exemption from the registration requirements of such act.