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.
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.
For further information: Algold Resources Limited., 1320, Graham Blvd., Suite 132, Town of Mont-Royal, Quebec, H3P 3C8, www.algold.com; François Auclair M.Sc., PGeo, President & CEO, [email protected], (514) 889-5089; Alex Ball, Executive VP, Finance & Corporate Development, [email protected], (647) 919-2227