Birim eyes production plans for Dunkwa gold property

Having acquired a prospecting licence for the Dunkwa gold property in Ghana, Birim Goldfields (CDN) is setting its sights on production, possibly within three years.

President Stuart Lee says the company is hoping to prove up a reserve of 10 million tonnes of low-grade (1-3 grams gold per tonne) material by the end of 1996 for heap-leach production.

The company’s overall goal “is to get into the hardrock and develop the reserves that are there,” Lee says.

The project was acquired several months ago from Sikaman Gold Resources (TSE). Dunkwa, situated along 45 km of the same strike zone that hosts the huge Ashanti mine and the fairly new Billiton-Bogosu gold mine, lies between the two producers.

Under way currently at Dunkwa is a helicopter-borne magnetic and electromagnetic geophysical survey. Planned is a diamond drilling and reverse-circulation drilling program for three “prospects”: Aboronye, Mampon and Adukrom.

Birim says previous exploration work by BHP of Australia outlined a combined preliminary reserve of more than 2.9 million tonnes of oxide and sulphide material grading 2 grams or less for the three prospects.

A private company which acquired its current name (taken from the Birimian system in Ghana) in June, 1994, Birim successfully completed a reverse takeover of publicly listed Exroy Resources in September. It has completed two relatively small financings and, on a fully diluted basis, has 8.4 million shares outstanding. A third, larger financing (and a listing on the Toronto Stock Exchange) is planned in the near future.

Birim’s head office is in Toronto, but it has executive offices in Montreal. Sitting on the board of directors with Lee are Guy Charette, Jean Rainville, Michael Beck and William Solloway.

Recently named as executive vice-president and chief operating officer is Denis Simoneau, who worked formerly for Soquem and Falconbridge. Birim has applied for prospecting licences covering the northern and southern extensions of its existing Ghanaian licence. Once obtained, the junior will control about 90% of the ground between the Ashanti and Billiton-Bogosu mines.