Compass Announces Joint Production Agreement to Commence First Commercial Gold Recovery on Tarabala Trend
Compass Gold has announced a joint-production agreement with SMAT, a Malian business group, to commence gold production at the Massala prospect along the 15 km Tarabala Trend in Mali. The agreement involves toll-treating Compass ore at SMAT's adjacent Small Mining Facility, with operations planned to begin in Q1 2025. The facility will process up to 50 tonnes/hour, within Mali's Small Mines code limit of 200,000 tonnes/year and 160,000 ounces over four years. The mineralization exceeds the profitable threshold of 1-gram-per-tonne. Free cash flow will fund operations, convertible debenture repayments, and expansion of exploration activities.
Compass Gold ha annunciato un accordo di produzione congiunta con SMAT, un gruppo imprenditoriale maliano, per avviare la produzione di oro nella prospettiva di Massala lungo il Tarabala Trend di 15 km in Mali. L'accordo prevede il trattamento dei minerali di Compass presso l'impianto minerario Small Mining Facility di SMAT, adiacente, con operazioni previste per iniziare nel primo trimestre del 2025. L'impianto processerà fino a 50 tonnellate/ora, rimanendo entro il limite del codice delle Piccole Miniere del Mali di 200.000 tonnellate/anno e 160.000 once in quattro anni. La mineralizzazione supera la soglia di redditività di 1 grammo per tonnellata. I flussi di cassa liberi finanzieranno le operazioni, i pagamenti di debito convertibile e l'espansione delle attività di esplorazione.
Compass Gold ha anunciado un acuerdo de producción conjunta con SMAT, un grupo empresarial maliense, para comenzar la producción de oro en la prospectiva de Massala a lo largo de la tendencia de Tarabala de 15 km en Malí. El acuerdo implica el tratamiento por contrato del mineral de Compass en la instalación minera pequeña adyacente de SMAT, con operaciones programadas para comenzar en el primer trimestre de 2025. La instalación procesará hasta 50 toneladas/hora, dentro del límite del código de Pequeñas Minas de Malí de 200,000 toneladas/año y 160,000 onzas en cuatro años. La mineralización supera el umbral de rentabilidad de 1 gramo por tonelada. El flujo de caja libre financiará las operaciones, el reembolso de los bonos convertibles y la expansión de las actividades de exploración.
Compass Gold는 말리 비즈니스 그룹 SMAT와 공동 생산 계약을 체결하고 말리의 타라발라 트렌드 15km를 따라 마살라 탐사에서 금 생산을 시작할 예정입니다. 이 계약은 SMAT의 인접한 소형 채굴 시설에서 Compass의 광석을 톨트리트먼트하는 것을 포함하며, 2025년 1분기부터 운영을 시작할 계획입니다. 이 시설은 시간당 최대 50톤을 처리할 수 있으며, 말리의 소규모 광산 코드 한도인 연간 200,000톤 및 4년 동안 160,000온스 이내에서 운영됩니다. 광물화는 톤당 1그램의 수익성 임계값을 초과합니다. 자유 현금 흐름은 운영, 전환 사채 상환 및 탐사 활동 확장을 위해 사용됩니다.
Compass Gold a annoncé un accord de production conjointe avec SMAT, un groupe d'affaires malien, pour commencer la production d'or sur le site de Massala le long de la tendance de Tarabala de 15 km au Mali. L'accord implique le traitement des minerais de Compass à l'installation minière de petite taille adjacente de SMAT, avec des opérations prévues pour commencer au premier trimestre 2025. L'installation traitera jusqu'à 50 tonnes/heure, dans la limite du code des Petites Mines du Mali de 200 000 tonnes/an et de 160 000 onces sur quatre ans. La minéralisation dépasse le seuil de rentabilité de 1 gramme par tonne. Le flux de trésorerie disponible financera les opérations, le remboursement des obligations convertibles et l'expansion des activités d'exploration.
Compass Gold hat eine Vereinbarung zur gemeinsamen Produktion mit SMAT, einer malischen Unternehmensgruppe, bekannt gegeben, um die Goldproduktion im Massala-Vorrat entlang des 15 km langen Tarabala-Trends in Mali zu beginnen. Die Vereinbarung sieht vor, das Material von Compass in der angrenzenden Kleinbergbau-Anlage von SMAT zu verarbeiten, wobei der Betrieb für das erste Quartal 2025 geplant ist. Die Anlage wird bis zu 50 Tonnen/Stunde verarbeiten, im Rahmen des Limits des malischen Kleinbergbau-Codes von 200.000 Tonnen/Jahr und 160.000 Unzen über vier Jahre. Die Mineralisierung übersteigt die rentable Schwelle von 1 Gramm pro Tonne. Der freie Cashflow wird die Operationen, die Rückzahlungen von wandlungsfähigen Anleihen und die Erweiterung der Explorationsaktivitäten finanzieren.
- Agreement secured for toll-treating gold production with minimal capital investment
- Processing capacity of up to 50 tonnes/hour
- Mineralization exceeds profitable threshold of 1-gram-per-tonne
- Processing facility located within 3 kilometers of gold prospect
- Production to benefit from historically high gold prices
- Production not starting until Q1 2025
- Specific cost-sharing details still pending
- Mining permit still needs to be secured
- to 200,000 tonnes/year under Small Mines code
First Production and Cash-Flow Planned for Q1 2025
Toronto, Ontario--(Newsfile Corp. - October 28, 2024) - Compass Gold Corp. (TSXV: CVB) (Compass or the Company) is pleased to provide an update on its plans to produce gold at the Massala prospect located along the 15 km Tarabala Trend, which is contained within the Company's Sikasso Property in southern Mali. (See Figure 1.)
Highlights
- Initial joint-production agreement reached for toll-treating Compass ore at the adjacent Small Mining Facility owned by SMAT, a Malian business group.
- Agreement calls for Compass to obtain a Small Mining permit utilizing a 'toll treating' agreement, and for SMAT to deliver and complete the installation of updated processing components at their production facility during Q1 2025.
- Free cash flow generated by operation would be used to fund operating cash requirements, convertible debenture repayments, and to expand exploration and production activities.
Compass CEO, Larry Phillips, said, "This initial joint-production arrangement represents an important new stride forward for Compass's plan to achieve our near-term objective to expedite profitable, near surface gold production with minimal capital investment. The ability to generate free cash flow, while retaining
Dr. Madani Diallo, Director and Country Manager, added, "We are very pleased to be partnering with SMAT, owned by a successful Malian business group who can be a strong strategic partner with Compass. SMAT has invested in a modern small mine processing facility located less than 3 kilometres from our near surface Massala gold prospect. As previously reported, this target zone has a strike length of at least 150 metres, and has been tested by a series of trenches down to a depth of 5 metres. Our assay results show that the mineralization clearly exceeds the 1-gram-per-tonne level that we consider to be profitable for a small mine. We are very excited to be seeing this first small mine coming into production as we continue to explore the opportunities for additional production scenarios along the highly prospective Tarabala trend."
Figure 1: Location of Massala and Tarabala prospects in relation to the SMAT processing plant. The Tarabala trend is defined by the zone of gold mineralization identified by Compass drilling.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/1861/226731_973b6352e49f881c_001full.jpg
The Joint-Production Agreement:
Compass recently reached an initial agreement for a joint production and toll-treating arrangement with SMAT, a Malian business group, regarding the use of its small mining facility, located adjacent to Compass's Massala and Tarabala prospects. The major portion of the facility is already onsite and awaiting the optimization of the processing components. Compass and its joint-venture partner have targeted Q1, 2025 for the SMAT processing facility to be operational and for Compass to have secured the required Mining Permit authorizing this joint toll-treating agreement.
Under this arrangement, Compass will be able to produce gold within the SMAT facility, by processing ore from Tarabala trend at a rate of up to 50 tonnes/hour. This total annual gold production and ore processing will fall within the provisions of the Malian Mining Code for Small Mines, as proclaimed in July of this year. (See Compass news release dated August 19, 2024). This code allows for a maximum of 200,000 tonnes/year and 160,000 ounces of gold over a four-year period.
A number of specific issues, including precise cost-sharing details, will be determined once the full plant is tested and commissioned for production.
Funds generated from the Company's small mine gold production will be used for operating cash requirements, providing funds to repay the Convertible debenture (see Compass news release dated July 4, 17 and 22, 2024) for those holders who do not elect to convert their interest to shares in the company, and finally, to pursue opportunities to expand production activities along other sections of the Tarabala trend and conduct additional exploration across the exploration permit areas retained by the Company.
Next steps
Compass's Malian team has commenced the applications process for permit renewals for the complete Sikasso Project area (1,173 sq. km), which includes an application for a Small Mining Permit over the Massala and Tarabala prospects (5 sq. km). The new Malian Mining Code provides a streamlined process for such a permit. This permit has a four-year term, which allows a total production of 160,000 ounces of gold with a limit of 200,000 tonnes of ore per year. Figure 1 illustrates our proposed permit area including the proximity of the location of the SMAT processing facility.
Audit Committee Update
In compliance with the applicable policies of the TSX Venture Exchange (the "TSXV") and National Instrument 52-110 - Audit Committees ("NI 51-102"), Compass has reconstituted its Audit Committee. Specifically, Larry Phillips has been added to the Audit Committee to fill the vacancy created following the passing of Company director Bill Pugliese earlier in the year. The Audit Committee is now comprised of three directors, namely, James Henderson (Chair), Joseph Conway and Larry Phillips, a majority of whom are considered "independent" under the applicable policies of the TSXV and NI 52-110 . Each of Messrs. Henderson and Conway is independent. Mr. Phillips in not considered to be independent as he is the President and Chief Executive Officer of Compass.
About Compass Gold Corp.
Compass, a public company having been incorporated into Ontario, is a Tier 2 issuer on the TSX- V. Through the 2017 acquisition of MGE and Malian subsidiaries, Compass holds gold exploration permits located in Mali that comprise the Sikasso Property. The exploration permits are located in three sites in southern Mali with a combined land holding of 1,173 sq. km. The Sikasso Property is located in the same region as several multi-million-ounce gold projects, including Morila, Syama, Kalana and Komana. The Company's Mali-based technical team, led in the field by Dr. Madani Diallo and under the supervision of Dr. Sandy Archibald, P.Geo, is conducting the current exploration program. They are examining numerous anomalies first noted in Dr. Archibald's August 2017 "National Instrument 43-101 Technical Report on the Sikasso Property, Southern Mali."
Qualified Person
This news release has been reviewed and approved by EurGeol. Dr. Sandy Archibald, P.Geo, Compass's Technical Director, the Qualified Person for the technical information in this news release under National Instrument 43-101 standards.
Forward‐Looking Information
This news release contains "forward‐looking information" within the meaning of applicable securities laws, including statements regarding the Company's planned exploration work and management appointments. Readers are cautioned not to place undue reliance on forward‐looking information. Actual results and developments may differ materially from those contemplated by such information. The statements in this news release are made as of the date hereof. The Company undertakes no obligation to update forward‐looking information except as required by applicable law.
For further information please contact:
Compass Gold Corporation
Larry Phillips - Pres. & CEO
lphillips@compassgoldcorp.com
T: +1 416-596-0996 X 302
Compass Gold Corporation
Greg Taylor - Dir. Investor Relations & Corporate Communications
gtaylor@compassgoldcorp.com
T: +1 416-596-0996 X 301
Website: www.compassgoldcorp.com
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/226731
FAQ
When will Compass Gold (COGDF) start gold production at the Tarabala Trend?
What is the processing capacity of SMAT's facility for Compass Gold (COGDF)?
What is the maximum gold production allowed under Mali's Small Mines code for Compass Gold (COGDF)?
