Resolute publishes initial resource for satellite deposit near Senegal mine

[Ben Graham]

Resolute Mining (ASX, LSE: RSG) published on Thursday an initial resource estimate for the Bantaco project near its Mako open-pit gold mine in Senegal, where mining is due to end soon and stockpile processing is expected to begin this month.

Bantaco is one of two potential satellite deposits that the Africa-focused miner is looking to develop to extend Mako’s mine life, with the other being Tomboronkoto. Both are within trucking distance of the Mako mill.

Resolute says the Bantaco project would specifically create additional optionality and flexibility due to its “favourable development conditions” and could be the first deposit to enter production.

The initial resource estimate is based on results of shallow drilling to date on the Bantaco South and West prospects. Together, they have an inferred gold resource of 266,000 oz., with potential to grow after further drilling at the Bantaco Main zone, which is set to commence later this year.

“This milestone demonstrates the excellent progress our exploration team is actively making to successfully extend the life of mine at our Mako gold operation,” stated Chris Eger, managing director and CEO of Resolute Mining.

Resolute hit by rising costs, lower output in Mali and Senegal

With the latest update, the Tomboronkoto and Bantaco deposits now have a combined resource estimate of over 600,000 oz., with possibilities for expansion based on ongoing exploration. Together, these projects likely have the potential to provide another 5-10 years of mining in Senegal, Resolute said.

“The Bantaco project is key to the extension of Mako and has the possibility to be developed ahead of the Tomboronkoto project, allowing us to build on our strong mining heritage in the region and established stakeholder relationships, which facilitate a clear development timeline,” Eger added.

Eger assumed the CEO role on a full-time basis earlier this year following the resignation of Terry Holohan, who was detained in Mali last November amid a tax dispute with the African nation’s junta-led government.