Resolute Mining (ASX: RSG; LSE: RSG) has updated its resource estimate for Syama North-an area adjacent to the Syama processing complex and its Syama underground gold mine in Mali.
The near-surface Syama North deposit contains measured and indicated resources of 19.17 million tonnes grading 3 grams gold per tonne for 1.86 million contained oz. gold. Inferred resources stand at 14.86 million tonnes averaging 2.8 grams gold for 1.32 million ounces. The estimate used a cut-off grade of 1 gram gold and the latest resource marks a 58% increase from the previous estimate.
The mineralization at Syama North is adjacent to where the company is currently mining. It remains open down-dip over a six-km strike length and the majority of the resource is within 150 metres of surface.
The company noted in a press release that an open pit sulphide mining operation would "complement" the Syama underground mine "and add flexibility to the processing complex."
Resolute is undertaking a prefeasibility study to examine low capex development opportunities at Syama North to provide higher grade ore feed sourced from open pit mining for a low capex expansion of the sulphide circuit by 30-50%, which would reduce all-in-sustaining costs, it notes in a December corporate presentation.
Syama is in southwest Mali, about 30 km from the country's border with Cote d'Ivoire and roughly 300 km southeast of the capital Bamako.
The large-scale mining operation consists of the Syama underground mine, the Tabakoroni Complex comprised of an open pit and recently discovered underground ore reserve about 35 km south of the processing plant, and several satellite open pits.
Resolute owns an 80% stake in Syama with the Government of Mali holding the remaining 20%.