Desert Gold Closes Non-Brokered Private Placement and Gains Strategic Partner in Western Africa
Delta, British Columbia--(Newsfile Corp. - April 5, 2017) - Desert Gold Ventures Inc. (TSXV: DAU) (FSE: QXR2) (OTC: DAUGF) ("Desert Gold" or "the Company") Further to the press release dated March 30, 2017, the Company is pleased to announce that it has closed its private placement. The Company has issued 2,860,800 units at a price of CAD$0.25 per unit, raising gross proceeds of CAD$715,200. Securities issued resulting from this private placement will be subject to a statutory hold period. This private placement is subject to approval by the TSX Venture Exchange.
Highlights
The Company successfully closes non-brokered private placement of 2,860,800 securing total proceeds of CAD$715,200
Sodinaf International SA becomes financial and strategic partner in Western Africa
Mr. Salif Keita is appointed to the position of Vice President of Operations, West Africa
Desert Gold outlines USD $1.5 million exploration program for its gold exploration portfolio in Western Mali
Sodinaf International SA ("Sodinaf") subscribed for 2,760,800 units representing the majority of the placement. Sodinaf is a West African gold mining company that owns a 55% interest in the Kodieran Mine in Southern Mali as well as a substantial gold exploration portfolio in Western Mali and Ivory Coast. The Kodieran gold mine is situated approximately 300 kilometers southeast of Bamako, the capital of Mali. The mine and associated mining lease is operated by Wassoul Or SA a private joint-venture company where Sodinaf is the majority shareholder at 55%. The Kodieran mining license and regional land package is situated on the West African Birimian greenstone belt; one of the most prolific belts in Western Africa where approximately 52 million ounces of gold resources have been discovered to date. The Kodieran mine is an open pit mining operation using a gravity plant that operates at a capacity of 11,000 tons per day. For more information visit http://www.wassoulor.com.
Desert Gold and Sodinaf will form a strategic partnership to develop Desert Gold's exploration licenses in Western Mali. The two companies will combine operational and financial resources to undertake exploration programs this year at all three of the Company's properties in Western Mali.
To this aim, the Company is pleased to announce the appointment of Mr. Salif Keita to the position of Vice President of Operations for West Africa. Mr. Keita is a senior geologist with over 14 years of experience in exploration and mining production. The majority of Mr. Keita's regional experience is in the Birimian Green Stone Belt in West Africa where he held senior positions with Anglo Gold Ashanti, Gold Fields and Great Quest Metals. Mr. Keita holds a B.Sc. Geology (Honors) from the National School of Engineering, Bamako, Mali. Mr. Keita will work with Desert Gold's technical directors to oversee the Company's exploration efforts in Western Mali.
2017 Exploration Plans
Exploration will begin at the Company's highly prospective Farabantourou prospect where an indicated and inferred resource of 69,600 oz Au exists known as Barani East (969,000 tons at 2.25 g/t oz Au with a 0.5 g/t cutoff grade)0. Farabantourou is located on the Senegal-Mali Fault Zone ("SMFZ") 40km south of the AngloGold Ashanti Sadiola/Yatela Mine and 50km north of Randgold's Loulou Mine. Both these mines are on the SMFZ. In addition to the Barani East deposit, Farabantourou hosts 6 other mineralized zones that are largely underexplored and which combine to form nearly 5 km of strike. Phase 1 of the exploration program will consist of a core-drilling program to reduce drill spacing on the current resource, as well as step out to drill new targets along strike to the south and west known as Kousilli and Dambamba. In addition to this, the Company will undertake to drill several deep holes at Barani East to depths up to depths of 400 meters. Phase 1 plans for a total of 6,000 meters of core drilling with work scheduled to begin immediately.
Desert Gold also plans to begin exploration this year at Segala West, the Company's other highly prospective project in Western Mali. The Segala West permit is surrounded by several mines, which include Randgold's Loulo-Gounkoto mine complex to the West. Adjacent to the East of Segala West are Endeavour Mining's Tabakoto and Segala mines. Endeavour's Kofi and Kefola prospects also lie to the north and south respectively where Desert Gold has allowed Endeavour to construct a road through its property where Endeavour is currently trucking ore from its Kofi prospect to its Tabakoto site. Within the Segala West permit exists a large soil geochemical anomaly covering an area of 24 km2 within which 3 significant artisanal mines are active. The surface expression of the neighboring mine, Tabakoto (Endeavour Mining), which hosts ~3 million oz Au is less than 1 km2 (18.5 Mt at 3.5 g/t for 1.8 million oz Au measured and indicated, 9 Mt at 3.6 g/t for 1 million oz Au inferred and 6.4 Mt at 3.5 g/t for 0.7 million oz au proven and probable). The mineralization hosted on the Company's property is not necessarily indicative of the mineralization hosted on Loulo-Gounkoto and Tabakoto deposits. However, the extent and persistence of the soil geochemical gold anomaly is the surface expression of significant mineralization below ground. Combined with the extensive artisanal mining presence on site, Desert Gold will undertake an extensive exploration program this year that will include structural mapping of all three of the artisanal pits, extensive deep trenching in the Southern area of the permit known as the Baroya area and finally a core drilling program consisting of a minimum of 5,000 meters of core drilling.
Finally the Company will undertake to complete surface exploration at its Djimbala permit this year located in the Yanfolila Gold belt in Southern Mali. The Company's Djimbala permit is surrounded by Hummingbird Resources' Yanfolila Gold Project. The Company will complete a soil geochemistry program over the permit and conduct grab sampling at the numerous artisanal sites on Djimbala. The company will also begin an auger drill program after it has completed its soil geochemistry and sampling programs with the aim of establishing targets for a follow up core drilling program.
The Company is budgeting USD $1.5 million for the programs outlined above.
Desert Gold's President Jared Scharf commented "We have been working diligently for some time now to identify an ideal partner for Desert Gold. In Sodinaf we have found a strategic partner with financial resources and a proven track record to explore, develop, construct and operate a large gold mine in the region in which our permits are situated. Today Sodinaf has made a significant investment into Desert Gold. We bring an excellent management team and exploration portfolio to the table and Sodinaf brings the financial and operational capabilities to help us develop this portfolio. This synergy is very exciting. We are also very happy with Mr. Keita's appointment as his experience working at some of the largest mines in Western Mali will be crucial in the development and execution of the programs we are planning this year. It is a gratifying day for the company and its shareholders. I look forward to providing more detailed information as it becomes available."
ON BEHALF OF THE BOARD
"Jared Scharf"
___________________________
Jared Scharf
President & Director
+1 (858) 247-8195
For further information please visit www.SEDAR.com under the company's profile.
This news release contains forward-looking statements respecting the Company's ability to successfully complete the Offering. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements, including the inability of the Company to successfully complete the Offering. These uncertainties and risks include, but are not limited to, the strength of the capital markets, the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; and the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with mining operations. Risks and uncertainties about the Company's business are more fully discussed in the company's disclosure materials filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. The Company assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.
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. This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the united states securities act of 1933, as amended, and may not be offered or sold in the united states or to the account or benefit of a U.S. person absent an exemption from the registration requirements of such act.
1 Technical Report on the Farabantourou Gold Mining Permit, K?(C)ki?(C)ba District, Western Mali, Author: U. Engelmann, November 26, 2015