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Resolute Mining to earn 80% interest in Syama shear zone project

Resolute Mining is set to earn up to an 80% interest in the junior’s Syama shear zone project, in the south of Mali. This follows an earn-in agreement inked between the firm and African Gold which grants Resolute, the project’s majority owner.

Work plan

Resolute Mining chief executive Terry Holohan confirmed the reports and said the firm will spend $500,000 on exploration over the next two years and will commence feasibility study within five years. If Resolute decides to mine the asset, African Gold can elect to contribute to the development of the project to maintain its equity or dilute to a 1.5% net smelter royalty. The Western Australia-based miner already has a major operation in the area, comprising the Syama underground mine, the Tabakoroni open pit and several satellite oxide pits.

The move according to the Chief Executive is also to rewrite Barrick’s CEO Mark Bristow‘s 2018 decision against developing the gold resource at Syama into a mining operation. He said at the time that the project, located 300km (217 miles) southeast of the capital Bamako and about 30km (21 miles) from the border with Côte d’Ivoire, was technically too difficult to mine.

“We thought we could crack the metallurgy. We’ve now ticked the box,” said Holohan, who took over as CEO in May.

 

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