Under an agreement with Tai-Pan Resources, Societe Miniere Sphinx (ME) will purchase a 51% interest in the Bakolobi gold project in Mali, West Africa, for $2.2 million. The agreement expires in June. Proceeds from the sale will be used to develop the site which, Sphinx says, is easily accessible by road, rail or air from the capital city of Bamako, 250 miles to the east.
The 242-sq.-mile mining concession contains two known gold deposits including the Medianandi surface deposit, with preliminary reserves of 360,00 tons grading 0.35 oz. gold per ton.
The property is situated along a northeast trending shear zone known as the Bakolobi fault. Sphinx believes the concession has significant potential for large surface deposits like the Loulou, a 28-million-ton body grading 0.14 oz. per ton.
An independent study has shown that mining costs at Medianandi would be about $11 per ton, Sphinx says. The company is currently negotiating for project financing and expects to begin work on the site by July.
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