MONTREAL, June 12, 2017 /CNW Telbec/ - ALGOLD
RESOURCES LTD. (TSXV: ALG) – "Algold" or the "Corporation" is
pleased to announce that the Mauritanian government has formally
consented to the granting of a mining license for the Corporation's
Tijirit project. This important decision from the Ministry of Oil,
Energy and Mines (the "Ministry") in favour of Algold will be
formalized by decree by the Mauritanian Council of Ministers in the
coming weeks. Under the terms of the mining license grant, Algold
will deliver a feasibility study by December
2018.
The Minister of Oil, Energy and Mines of Mauritania, Dr Mohamed
Abdel Vetah declared, "Mauritania is a country with many mining
investment opportunities and economic, social and political
conditions that are conducive to the pursuit of development of a
sector considered strategic by the Mauritanian government." He
added, "The government has instituted a mining policy aimed at a
mutually beneficial balance, while safeguarding the interests of
the nation and investors."
"This milestone is a significant achievement for both
Mauritania and Algold and is
important to our growth plan for Tijirit, as well as for the
development of other deposits over the license area, which extends
over 300 square kilometers," said François Auclair, Chief Executive Officer, Algold. "We
are grateful for the Government of Mauritania's vital, ongoing support of our
Corporation as demonstrated by the formal consent to issue a
30-year mining license."
Algold acquired the Tijirit project in April 2016 and immediately commenced a major
exploration program, under which it completed 20,000 meters of
drilling (Phase I and II). The drilling allowed Algold to highlight
a high-grade gold deposit with significant upside potential. An
initial resource calculation completed in March 2017 by SGS Geostat estimated an inferred
gold resource of 602,130 ounces at an average grade of 2.29 g/t Au.
The supporting NI 43-101 report will be posted on SEDAR no later
than June 15, 2017.
Algold completed metallurgical test work on the Tijirit project
(reference Algold's press release dated January 18, 2017), which indicated recovery of up
to 97% by gravity and cyanidation of the Eleonore-type
mineralization. The Corporation further completed an Environmental
Impact Assessment Study, which was filed with the Ministry in
December 2016. Subsequently, the
Ministry issued a favourable opinion to Algold as of February 2017 (reference Algold's press release
dated February 27, 2017).
Algold's Phase III 25,000-meter drilling program, which
commenced on February 1, 2017, is
ongoing with the objective to further delineate the
high-grade gold deposit at Tijirit.
This press release has been reviewed for accuracy and compliance
under National Instrument 43-101 by Yann
Camus, P.Eng., of the independent firm SGS Canada Inc.
– geological group Geostat is the qualified person under NI
43-101 standards who supervised the preparation of the resource
estimate and approved all resource-related material in this press
release. Yann Camus has sufficient
experience relevant to the styles of mineralization under
consideration and to which the activities are being reported to
qualify as the Qualified Person for the purposes of the
announcement. Yann Camus has
reviewed the results of the QAQC program at Tijirit, both during
and prior to Algold's involvement, and is sufficiently satisfied
with both the QAQC protocol as well as the performance of the QAQC
measures to view the assay results reported in this release as both
accurate and precise. Mr Camus visited the property from
April 16 to 20, 2016, for current
personal inspection requirements. All information supporting the
resource estimation was verified for any inconsistencies. There was
no limitation on the verification process.
André Ciesielski, DSc., PGeo., Algold Resources Ltd Lead
Consulting Geologist and Qualified Person, and Alastair Gallaugher, C.Geo. (Chartered Geologist
and Fellow of the Geological Society of London), BSc. Geology, Algold's Exploration
Manager in Mauritania, Qualified
Persons as defined by NI 43−101 Standards of Disclosure for Mineral
Projects. André Ciesielski has further approved the scientific and
technical disclosure in the news release.
ABOUT ALGOLD
Algold Resources Ltd. is focused on the exploration and
development of gold deposits in West
Africa. The board of directors and management team are
seasoned resource industry professionals with extensive experience
in the exploration and development of world-class gold projects in
Africa.
CAUTIONARY LANGUAGE REGARDING FORWARD-LOOKING
INFORMATION
Certain statements in this press release may be forward-looking.
Such statements include those with respect to the timing and nature
of the Mauritanian president's decision with respect to the Tijirit
mining lease, as well as the conditions that may be attached to
that lease. Although the Corporation believes the expectations
reflected in such forward-looking statements are based on
reasonable assumptions, it can give no assurances that its
expectations will be achieved. Such assumptions, which may prove
incorrect, include (i) the Mauritanian president will accept
that recommendation of the Ministry, both with respect to the
granting of a lease and the conditions attached thereto and
(ii) the Mauritanian president will make and formalize his
decision during the month of June
2017 or in early July 2017.
Factors that could cause actual results to differ materially from
expectations include (i) the Mauritanian president considering
factors other than the Ministry's recommendation in making his
decision, whether based on information that is currently known or
unknown and (ii) the decision with respect to the lease being
delayed for whatever reason, including other matters taking
priority over the formalization of that decision. A description of
other risks affecting Algold's business and activities appears
under the heading "Risk Factors" on pages 19 to 21 of Algold's 2016
annual management's discussion and analysis, which is available on
SEDAR at www.sedar.com. No assurance can be given that any events
anticipated by the forward-looking information in this press
release will transpire or occur, or if any of them do so, what
benefits that Algold will derive therefrom. In particular, no
assurance can be given as to the future financial performance of
Algold. Algold disclaims any intention or obligation to update or
revise any forward-looking statements in order to account for any
new information or any other event, except as required under
applicable law. The reader is warned against undue reliance on
these forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Algold Resources Ltd.