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Bassari Resources surges 16% as finance for Makabingui Gold Project is formalised

The company has identified the potential to increase resources adjacent to the planned pits.
Picture of gold sample from Makabingui
Funding of US$13 million will assist the company in developing Makabingui, its flagship project

Bassari Resources Ltd (ASX:BSR) has received approval of the credit facility requested from Coris Bank International for the Makabingui Gold Project in Senegal.

Bassari is focused on discovering and developing multi-million ounce gold deposits in the Birimian Gold Belt of Senegal in West Africa.

Funding of US$13 million will assist the company in developing Makabingui, its flagship project, which has a substantial resource.

Financing reduces risk

Confirmation of financing is always an important step in de-risking projects, often prompting a share price re-rating.

This occurred today with Bassari trading as high as 2 cents, representing a gain of about 16%.

This is just shy of the 12-month high of 2.1 cents, and notably, the number of shares traded was higher than any day in the last 12 months with volumes well in excess of 20 million.

High-grades are a feature

The Makabingui project has an open pit probable ore reserve of 158,000 ounces in 860,000 tonnes at 5.7 g/t gold.

An updated feasibility study conducted in 2017 confirmed the broader project metrics and economics as first estimated in 2014.

Manpower and equipment being mobilised

In recent weeks, Bassari has refined its project execution plan and started to secure the availability of people and resources required to commence the project development.

Key activities such as mine site surveying of the open pit waste dumps, all road and infrastructure areas are underway or close to commencement.

Potential to increase resource

In addition to development activities, Bassari has identified the potential to increase resources adjacent to the planned pits through geophysical surveys and drilling.

Proposals are being compiled to test these while preparing for detailed pit planning and mine development.

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