Kodo Main

Drilling commenced at the site of the old Kodo mine in April 2007. To date, a total of 56,000m has been drilled at this location. Mineralisation has been identified to a vertical depth of 450m (open ended).

Gold is hosted in sheared black shale/BIF units close to the contact with a competent footwall metagreywacke (Figure 6).

Total

   

15,130,183

3.58

1,729,490

Area Cut off (g/t) Category Tonnes (t) Grade(g/t) Ounces(oz)

Kodo Main

0.5

Indicated

4,799,487

3.63

560,197

Kodo Main

0.5

Inferred

10,330,969

3.52

1,169,293

The latest assay results are available.

Mineralisation at Kodo remains completely open at depth and based on the excellent geological continuity and in accordance with the transition towards JORC 2012 requirements, a 4th (Exploration Target) classification has been introduced for additional deep extensions at Zani Kodo. This projected target is anticipated to be in the range of 1.3 to 2.3 Mt at an average grade of 3 to 4 g/t (Note: Figures are expressed as ranges to reflect uncertainty in the estimate.) Additional drilling is required to upgrade these figures to JORC resource status.

The historical Zani-Kodo operation reached a total production of 572,000t at 6.5g/t (mining high-grade veins), but was abandoned during the civil war in 1964. Zani-Kodo's mineralised zone is 700m in length at the surface and up to 30m wide. The Main Zone consists of silicification in sheared metasediments and banded iron formation with gold associated with sulphides. At the time of abandonment the (non-compliant) sulphide reserve was reported to be 352,000t at 8.15g/t. The location of the historical pit is shown in (Figure 4).

Figure 4: Historical Kodo pit looking northwards.

Figure 5: Zani Kodo Trend showing location of subareas and gold in soil anomaly, September 2013.

fig_6@2x

Figure 6: SW-NE cross section through Kodo Main orezone, September 2013.

A high-grade shoot is present consisting of quartz veins and breccias (Figure 7) with pyrrhotite and arsenopyrite the dominant sulphides. This zone is up to 30m thick with a strike length of 300m.

Figure 8: Results status, Kodo Main, September 2013.

Figure 9: Oblique view of mineralised wireframes, Kodo Main, September 2013.

A detailed interpretation of drilling results, surface mapping and downhole structure has allowed the definition of a robust structural model of the Kodo area. The deposit is interpreted to comprise of a basal thrust along the metasandstone-BIF contact with a series of steeper hangingwall splays. Enhanced mineralization at Kodo occurs at a major frontal ramp where the dip is significantly steeper than elsewhere. A series of late NE trending normal faults have also been identified. These have allowed the wireframes to be tightly defined in specific fault blocks. The margins of the orezone are invariably sharp with <1% difference between 0 and 0.5g/t cut offs. The mineralization wireframes at 0.5g/t cut off are shown in (Figure 9).

The Zani-Kodo project total combined JORC-compliant gold resource now stands at 2.97Moz at 2.43g/t (based on a cut-off grade of 0.5g/t). This is an increase of 13% on the February 2013 resource statement, which was itself a 30% increase on the February 2012 resource statement. Test work carried out on samples taken from the Kodo Main orebody found the ore to be non-refractory and showed higher than 90% gold extraction across all the recovery methods tested.

As part of feasibility work underway at Kodo Main, a resource-conversion drilling programme was completed in 2014. This will be followed by a geotechnical drilling programme and regional field investigations will continue during FY2015.