Bassari/WATIC joint venture development of the Makabingui Gold Project has secured an exploration permit from the Minister of Mines of Senegal.
A presidential decree will now be issued to formalise the terms of Addendum.
Approval includes the Makabingui one million ounce gold deposit with the 8km strike at Makabingui South. The permit enables the project to move to operational phase. This project is situated at the eastern part of Senegal.
The exploration permit is valid for five years, subject to renewable for one or more periods not more than five year terms each, until the depletion of deposits.
The approval also requires formation of an exploration mining company in which a 10% non-contributory interest will be issued towards the Republic of Senegal.
The government has also granted multiple tax exemptions for the project in the initial three year period with the permission to freely export mining substances.
With this permission, the company also requires to pay a quarterly royalty of 5% of gold sale to the Senegal government and contribute $100,000 for social development in the region.
The project will contribute $150,000 per annum for training and development of Senegalese in the mining sector, mining promotion, logistical support and technical services of the Ministry of Mining.
The Makabingui Gold Project currently hosts a mineral resource comprising 11.9 million tonnes averaging 2.6g/t gold for a contained one million ounces of gold classified into the indicated and inferred resource categories.
Melbourne-based gold developer Bassari Resources Limited owns a large portfolio of exploration permits in the Birimian Gold Belt in Senegal.
Image: Mining tunnel. Photo: courtesy of Pakorn at FreeDigitalPhotos.net.