Birim cuts more gold in Ghana

Vancouver A 12 hole reverse circulation drill program by Birim Goldfields (BGI-T) has enhanced the economic prospects of the Mansiso target on the recently sold Dunkwa concession in southern Ghana.

Birim is selling its 90% interest in the Dunkwa land package to Golden Star Resources (GSC-T). Dunkwa consists of two exploration licenses: Asikuma, which surrounds the Mampon deposit, and Mansiso, which adjoins both Asikuma and Golden Star’s Bogoso property. Golden Star also assumes Birim’s right to a royalty from the Mampon deposit, which depends on the size of the mineral reserve outlined on Mampon.

The Mansiso property hosts the small Opon gold deposit, with a probable reserve of 108,000 tonnes grading 2 grams per tonne.

Birim gets US$3.4 million for its holding in Dunkwa and retains a variable royalty based on the quarterly average of the London afternoon gold fix. At prices of US$300 per oz. and less, the royalty is 2%, increasing to 2.5% at gold prices below US$350, to 3% at prices up to US$400, and to 3.5% at prices above US$400. The first 200,000 oz. of production at Mampon are exempt from the royalty.

The property transactions need the approval of the government, which owns a 10% interest in all the properties and once the deal is complete, Golden Star will reimburse Birim for all costs incurred during the Mansiso drill campaign.

The newly completed 865-metre program returned up to 39 grams gold per tonne over 1 metre in hole 5. Other highlights include:

• Hole 2 6.93 grams gold over 6 metres from 38 metres downhole;
• Hole 3 5.16 grams gold over 6 metres from 53 metres downhole;
• Hole 4 4.37 grams gold over 2 metres from 24 metres downhole; and
• Hole 6 6.3 grams gold over 7 metres from 42 metres downhole;

The results define a steeply dipping zone of gold zone up to 4 metres wide. Higher-grade mineralization is associated with quartz veining in strongly carbonate-altered Birimian meta-sediments and is surrounded by a halo of lower grade values with weaker carbonate alteration.

The company has now moved the rig over to its wholly owned Bui District properties in west central Ghana. A 40-hole program aimed at testing the 1-km long Namasa gold-in-soil anomaly is underway.