Rains force work suspension at Poura

A flash flood has caused Sahelian Goldfields (shgi-c) to suspend its underground rehabilitation and development program at the Poura gold mine in Burkina Faso.

Sahelian reports that 70 mm of rain, falling in a space of several hours, resulted in an overflow of water from the nearby Poura townsite into the open pit and on through an adit to underground workings. Although property damage occurred, the company indicates that only minimal damage was inflicted on underground equipment.

Surface machinery and facilities — including a 1,000-tonne-per-day mill and power-generating station — were unaffected by the flood. Underground workers are also said to have come out unscathed.

As a result of the flooding, Sahelian expects the southern portion of the underground workings to be rehabilitated and reopened by mid-September.

Meanwhile, the northern section, which suffered the brunt of the onslaught, is scheduled to reopen in late autumn.

The company’s exploration program on the surrounding 500-sq.-km concession was not hindered by the downpour.

Sahelian purchased the rights to Poura last April from Ashanti Goldfields (ahd.u-t) in exchange for 3 million shares and 2 million share purchase warrants. Each warrant is worth one share, has an exercise price ranging from $1.25 to $2.25, and expires in six years. The deal also gives Ashanti the right to elect one representative to Sahelian’s board.

Up to its suspension last year, the Poura mine yielded more than 600,000 oz.

gold. Mining occurred by open-pit and underground methods and followed a 2-km-long quartz vein. The underground workings, which rarely exceeded depths of 200 metres, will eventually be extended to a depth of 500 metres through an additional 3,400 metres of ramping and drifting. Sahelian also plans to carry out 10,000 metres of underground diamond drilling in order to prove up reserves between the 300- and 500-metre levels.

Sahelian has the option to earn up to a 90% interest in the mine, facilities and surrounding exploration permit by producing a feasibility study. Project financing for the underground program is being assisted by a US$14.6-million grant provided by SYSMIN, a European development agency.