Technical Report for the Yaramoko Gold Project, Burkina Faso
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Technical Report for the Yaramoko Gold Project, Burkina Faso Report Prepared for Roxgold Inc. Report Prepared by SRK Consulting (Canada) Inc. 3CR016.002 June 4, 2014 3CR016.002 – Roxgold Inc. Technical Report for the Yaramoko Gold Project, Burkina Faso Page i Technical Report for the Yaramoko Gold Project, Burkina Faso Roxgold Inc. 360 Bay Street, Suite 500 Toronto, Ontario M5H 2V6 E-mail: [email protected] Website: www.roxgold.com Tel: +1 416 203 6401 Fax: +1 416 203 0341 SRK Consulting (Canada) Inc. 151 Yonge St., Suite 1300 Toronto, Ontario, Canada M5C 2W7 E-mail: [email protected] Website: www.srk.com Tel: +1 416 6011445 Fax: +1 416 601 9046 SRK Project Number 3CR016.002 Effective date: April 22, 2014 Signature date: June 4, 2014 Qualified Person List: Jean-François Couture, PGeo Ken Reipas, PEng Brian Connolly, PEng Sébastien Bernier, PGeo Corporate Consultant Principal Consultant Principal Consultant Principal Consultant (Geology) (Mining Engineering) (Mining Engineering) (Resource Geology) Bruce Murphy, FSAIMM Anthony Rex, CGeol Fiona Cessford, PrSciNat Rob Bowell, CChem Principal Consultant Corporate Consultant Corporate Consultant Corporate Consultant (Mining Engineering) (Hydrogeology) (Environment) (Geochemistry) Leendert Lorenzen, CPEng Ian Kerr, MIE Aust David Morgan, CPEng Geoff Bailey, CPEng Mintrex Pty Ltd Mintrex Pty Ltd Knight Piésold Pty Ltd Cardno BEC Pty Ltd. Contributing Author List: SRK Consulting (Canada) Inc. SRK Consulting (UK) Limited Mintrex Pty Ltd Dominic Chartier, PGeo Mike Palmer, FGS Hien Ngo, FIE Aust Glen Cole, PGeo Mark Raynor, FGS Naim Abou-Rjeily MIE Aust Oy Leuangthong, PEng Rowena Smuts Benny Zhang, PEng Lalit Kumar Knight Piésold Pty Ltd Ross Greenwood Ludovic Rollin Steve McKean MIE Aust Iris Lenauer Andrew Barnes, CGeol, EurGeol, FGS Jason Adam Julien Declercq, FGS Cardno BEC Pty Ltd Sophia Karadov Rick Di Filippo Alison Harrington Cover: Typical landscape of the Yaramoko gold project. Photo courtesy of Roxgold Inc. FS team / ah – sk – jfc – gc – kr Roxgold_Yaramoko_Final_FS_TR_3CR016002_20140604.doc June 4, 2014 3CR016.002 – Roxgold Inc. Technical Report for the Yaramoko Gold Project, Burkina Faso Page ii IMPORTANT NOTICE This report was prepared as a National Instrument 43-101 Standards of Disclosure for Mineral Projects Technical Report for Roxgold Inc. (Roxgold) by SRK Consulting (Canada) Inc. (SRK). The quality of information, conclusions, and estimates contained herein are consistent with the quality of effort involved in SRK’s services. The information, conclusions, and estimates contained herein are based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this report. This report is intended for use by Roxgold subject to the terms and conditions of its contract with SRK and relevant securities legislation. The contract permits Roxgold to file this report as a Technical Report with Canadian securities regulatory authorities pursuant to National Instrument 43-101. Except for the purposes legislated under provincial securities law, any other uses of this report by any third party is at that party’s sole risk. The responsibility for this disclosure remains with Roxgold. The user of this document should ensure that this is the most recent Technical Report for the property as it is not valid if a new Technical Report has been issued. © 2014 SRK Consulting (Canada) Inc. This document, as a collective work of content and the coordination, arrangement and any enhancement of said content, is protected by copyright vested in SRK Consulting (Canada) Inc. (SRK). Outside the purposes legislated under provincial securities laws or as otherwise stipulated in SRK’s client contract, this document shall not be reproduced in full or in any edited, abridged or otherwise amended form unless expressly agreed in writing by SRK. FS team / ah – sk – jfc – gc – kr Roxgold_Yaramoko_Final_FS_TR_3CR016002_20140604.doc June 4, 2014 3CR016.002 – Roxgold Inc. Technical Report for the Yaramoko Gold Project, Burkina Faso Page iii Executive Summary Introduction The Yaramoko gold project is a pre-development gold mining project located 200 kilometres (km) southwest of Ouagadougou, the capital city of Burkina Faso. This project is wholly owned by Roxgold Inc. (Roxgold) a Canadian public company domiciled in Toronto, Ontario with shares listed on the TSX Venture Exchange under the symbol ROG. During the summer of 2013, Roxgold commissioned SRK Consulting (Canada) Inc. (SRK) to lead a team of consultants including Mintrex Pty Ltd (Mintrex) of Perth, Australia, Knight Piésold Pty Ltd (Knight Piésold) of Perth, Australia and Cardno BEC Pty Ltd (Cardno BEC) of Perth, Australia to prepare a feasibility study to bankable standards. The objective was to demonstrate the economic viability of a proposed underground mine and onsite concentrator targeting the Indicated mineral resources contained in the 55 Zone. As part of this feasibility study, SRK and Knight Piésold conducted rock and soil geotechnical, hydrogeology, and geochemistry field investigations during the fourth quarter of 2013 to complete the characterization of the project attributes. Additional metallurgical testing was also completed in late 2013 and early 2014, under the supervision of Mintrex, to support the design of a processing flow sheet. Separately, Roxgold mandated the Bureau d’Études des Géosciences, des Énergies et de l’Environnement (BEGE) from Ouagadougou, Burkina Faso to undertake field baseline investigations and to compile an environmental and social impact assessment of the proposed Yaramoko mining project. This technical report summarizes the technical information that is relevant to support the disclosure of a Mineral Reserve Statement for the Yaramoko project pursuant to Canadian Securities Administrators’ National Instrument 43-101. It provides a summary of the work completed by the independent consultants. Also, it presents the assumptions and designs at a level of accuracy that is required to demonstrate the economic viability of the mineral resources defined for the 55 Zone, that were considered. The opinions contained herein and effective April 22, 2014, are based on information collected by the various consultants throughout the course of their investigations. Property Description and Ownership The Yaramoko project property is located near the town of Bagassi, approximately 200 km southwest of Ouagadougou in the Balé Province of western Burkina Faso. The centroid of 55 Zone is located at 3 degrees and 16 minutes longitude west and 11 degrees and 45 minutes latitude north. The Yaramoko project consists of a single exploration permit totalling 167 km2 granted by the Ministère des Mines, des Carrières et de l’Énergie of Burkina Faso to Roxgold Burkina Faso SARL, a wholly owned subsidiary of Roxgold. Roxgold is the sole owner of the property subject to a 10% carried interest held by the Government of Burkina Faso. The permit was renewed in May 2013 and is valid until September 8, 2016. Accessibility, Climate, Local Resources, Infrastructure, and Physiography The Yaramoko project can be reached via the highway system by two routes to the village of Bagassi (population of 3,000) located at the center of the property. A narrow-gauge railway connecting Ouagadougou with the port city of Abidjan in Cote d’Ivoire divides the property. Roxgold’s exploration camp is located in the village of Koussaro, 2 km east of the exploration permit’s eastern boundary. The camp comprises several cabins with indoor plumbing. Currently diesel generators produce electricity. The closest major city is Boromo, located 50 km away. It is serviced by the national power grid and it hosts a hospital and additional suppliers. However, major purchases and procurements come from Ouagadougou. FS team / ah – sk – jfc – gc – kr Roxgold_Yaramoko_Final_FS_TR_3CR016002_20140604.doc June 4, 2014 3CR016.002 – Roxgold Inc. Technical Report for the Yaramoko Gold Project, Burkina Faso Page iv Agriculture is the main industry in the region with many fields of millet, groundnut, and cotton. The surface area covered by the Yaramoko exploration permit is sufficient for the infrastructure necessary for an underground mine, including processing facilities and tailings storage areas. The climate is semi-arid, with a rainy season from April to October and a dry season that is mild to warm from November to February and hot from March to June. Temperatures range from a low of about 15 degrees Celsius in December to highs of about 45 degrees Celsius in March and April. Annual total rainfall in the area averages 800 millimetres. Geology and Mineralization The north-northeast-trending Boni shear zone divides the Yaramoko project area between the predominantly Houndé volcanic and volcaniclastic rock to the west and the Diébougou granitoid domain composed predominantly of granitic rock with minor volcanic rock to the east. The main lithological units are mafic volcanic rocks, felsic dikes, and late dolerite dikes. This region is considered prospective for orogenic gold deposits, which typically exhibit a strong relationship with regional arrays of major shear zones. Several zones of gold mineralization exist on the Yaramoko project. The target gold mineralization for the feasibility study occurs in the 55 Zone hosted in a narrow east-northeast-trending shear zone. From 0 to 400 metres (m) depth, the shear zone dips moderately (65º to 70º) to the south and hosts thick extensional