High grade underground scoping study

An Underground Scoping Study has been undertaken providing an assessment of the potential for an underground development phase for the Makabingui Gold Project within the one million ounce gold resource. Underground development would commence on Completion of Pit 1 mining operations and utilise existing infrastructure and 300ktpa processing plant factored into the Open Pit Feasibility Study for the development of four high grade open pits.

Makabingui High Grade Underground Scoping Study highlights at US$1200/oz gold price:

Mined ounces 120,000 ounces (additional to open pits)
Average gold grade to the mill >7.0 g/t gold
Mine life extension ∼2.5 years
Estimated Revenue US$144M
Estimated OPEX US$56M
Estimated CAPEX US$35M
Processing recovery 95%
Cut-off-grade 3g/t gold

The pit designs for Pit 1, developed as part of the initial mining phase of the Makabingui Gold Project, have been used for the preliminary Underground Scoping Study. The underground analysis only uses the Inferred Resources within the vicinity of Pit 1 (see Figure 1 & 2).

Figure 1. Mine Plan View Showing Pits and Waste Dump
Figure 1. Mine Plan View Showing Pits and Waste Dump

Figure 2. Makabingui Resource Blocks – Pit 1 Area
Figure 2. Makabingui Resource Blocks – Pit 1 Area

The Makabingui gold resource at depth comprises steep mineralised zones dipping to the south east and striking NNE. The following parameters have been used to generate optimised stope shape designs within the mineralised lodes:

Minimum mining width (horizontal) 2 metres
Stope height 20 metres
Stope length 10 metres
Stope dilution (on both footwall and hangingwall) 0.3 metres
Minimum pillar between adjoining stopes (between lodes) 10 metres
Cut-off-grade 3g/t gold

The Pit 1 design, prepared as part of the Open Pit Feasibility Study, was used to locate the portal. The underground design used the following parameters:

Decline size 5 metres wide by 5.5 metres high at a gradient of 1 in 7 2,120 metres
Lateral access of 5 metres wide by 5 metres high and flat 3,740 metres
Mineralised lode development of 4.5 metres wide by 4.5 metres high and flat 3,360 metres
Interval between levels 20 metres
Ventilation development 734 metres

Figures 3 & 4 below show the underground design.

Figure 3. Underground Development Design Looking South East
Figure 3. Underground Development Design Looking South East

Figure 4. Underground Development Design Looking South East Including Stopes
Figure 4. Underground Development Design Looking South East Including Stopes

Underground development would commence on completion of Pit 1 mining operations and utilise existing infrastructure and 300ktpa processing plant factored into the Open Pit Feasibility Study for the development of four high grade open pits.

Figure 5. Project Layout – Mine and Processing Plant
Figure 5. Project Layout – Mine and Processing Plant

Bassari Resources Ltd
Bassari Resources Ltd
ACN 123 939 042
Suite 1204, 530 Little Collins Street
Melbourne VIC 3000