Partners advance Taparko gold project

A feasibility study considering the combination of the Taparko and Bouroum gold deposits in Burkina Faso, West Africa, envisages total average production of 91,000 oz. per year over 7.5 years.

Taparko is held by High River Gold Mines (HRG-T); Bouroum, by Axmin (AXM-V).

Running at the annual rate of 1 million tonnes, the operation would tap into a reserve of 6.7 million tonnes grading 2.8 grams gold per tonne via three pits at Taparko. Similarly, three pits on the Bouroum permit, 49 km to the northwest, would target some 110,000 oz. gold.

Plans call for construction of a mill and related infrastructure at Taparko, which would handle ore from both properties. Based on a gold price of US$350 per oz., the project would generate an internal rate of return exceeding 15%. High River says capital costs will be further determined by the ongoing feasibility study. According to the prefeasibility study, capital costs for the combined operation (including a conventional 800,000-to-1,000,000-tonne-per-year gravity carbon-in-leach plant) would be roughly US$30 million.

The facilities have been designed with consideration given to the potential for satellite deposits on both properties. Of 16 gold targets at Taparko, nine are close to the area considered by the latest study.

High River also has a 9.9% stake in Jilbey Gold Exploration (JLB-V), which has reported significant gold values from trenching, prospecting and geochemical surveying on its two adjacent permits. Jilbey plans to drill several targets during the fourth quarter. High River has a back-in option for a half-interest on the properties and would act as operator during any development and production.

Earlier this year, measured and indicated resources at Bouroum were boosted by 56% to 3.9 million tonnes grading 2.8 grams; another 1.6 million tonnes of inferred material runs 2.2 grams. The resource is contained in three zones. Both estimates employ a cutoff grade of 1 gram gold.

An unclassified resource at Taparko tips the scales at 12.6 million tonnes running 2.6 grams gold. The resource is found in four zones in a 4.4-km portion of the Taparko shear zone. The estimate stretches to a depth of 100 metres and is based on 303 holes.

Production is planned for late 2005, subject to a production decision following the granting of the required permits.

High River has an 80% interest in the Taparko project; the government of Burkina Faso has 20% (5% of which is participating). Axmin can earn a 65% interest in Bouroum by delivering a bankable feasibility study to Channel Resources (CHU-T). Channel has agreed to sell its future minority stake at US$10-15 per oz. of reserves; however, the government retains a back-in right for 10% if commercial production is achieved.