Volta Resources to suspend its current approach to the feasibility study at the Kiaka Gold Project in Burkina Faso and internally review further options inherent in the deposit
07/12/2013 08:02 AM ET
TORONTO, Jul 12, 2013, 2013 (Canada NewsWire via COMTEX News Network) -- TSX: VTR
Volta Resources Inc. ("Volta Resources" or the "Company") (TSX: VTR) announces that it is suspending its current approach to the
Feasibility Study currently underway at its flagship Kiaka Gold Project
in Burkina Faso, owing to current market conditions and lower gold
prices.
The Kiaka Gold Project is a potential large scale development project
that is highly leveraged to benefit from gold prices exceeding $1,350
per ounce. Recognizing the near-term shift in gold prices, the Company
in consultation with its technical and financial advisors, believes it
is prudent to review a lower risk development approach on a smaller
scale utilizing a mining plan which will result in a higher grade of
ore processed. Therefore the Company will be reviewing existing data
collected to date from the current Feasibility Study in order to
internally review its options that are inherent in the Kiaka Gold
Deposit within a lower gold price environment, while maintaining
options to scale up production capacity. Fortunately the Kiaka Project
lends itself to be selectively mined and processed because of the
presence of clearly defined higher grade zones that exhibit excellent
continuity occurring within the broad zone of mineralization.
Most of the component technical studies being undertaken in the current
Feasibility Study have been largely completed. These include
geological and resource modelling, in-pit geotechnical, civil
geotechnical, hydrological, metallurgical, waste rock characterization,
environmental and social studies. Infrastructure layout, tailings
design, waste rock dump design, process engineering, mine design and
scheduling are also well advanced. Quotes are also being obtained for
items related to both capital and operating costs. This information
will be invaluable to the Company in determining the best development
and production scenario to pursue for a robust project at lower gold
prices. These identified changes necessary to achieve this objective
will be incorporated into the work leading to the completion of the
Feasibility Study using the revised approach. This will inevitably
mean that completion of the Feasibility Study will be delayed and will
not be ready in Q3 2013, as previously indicated.
Recognizing the near-term commodity and market conditions, the Company
continues to rationalize overhead and exploration budgets in order to
lower expenditures in an effort to conserve capital.
Under the guidelines of National Instrument 43-101, the qualified person
for the Kiaka Gold Project is Mr. Guy Franceschi, Vice President,
Exploration for Volta Resources. Mr. Franceschi is a member of the
European Federation of Geologists and has reviewed and approved the
contents of this news release.
About Volta Resources:
Volta Resources has a portfolio of quality gold exploration projects in
Burkina Faso and Ghana, both mining-friendly West African jurisdictions
with proven world-class gold deposits. VTR is focussing on its
flagship Kiaka Gold Project (NI-43-101 compliant resources include
153.26 Mt @ 0.99 g/t Au for 4,862,000 ounces in the Measured and
Indicated categories and 33.74 Mt @ 0.93g/t for 1,006,000 ounces in the
Inferred category (Please see VTR press release dated January 10, 2013)
including 34.38 million tonnes @ 1.04 g/t Au for 1,145,969 ounces of
gold in the Proven category and 91.70 million tonnes @ 0.93 g/t Au for
2,742,353 ounces of gold in the Probable category (Please see VTR press
release dated May 3, 2012). The acquisition of properties around the
Kiaka Gold Project has provided VTR with an extensive ground position
along the highly prospective Markoye Fault Corridor in an important
emerging gold province.