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A shot in the arm to the Karma gold-bearing project managed in the North of Burkina Faso by the Canadian mining company, TrueGold.
It has just obtained a 120 million dollar financing that is approximately 60 billion FCFA.
The financing was received from Sandstorn Gold (25 %) and Franco Nevada (75 %) and is destined to the building of the Karma mine.
We should underline that the operator certificate for the Karma mine was delivered to TrueGold by the government of Burkina Faso in December 2013.
According to the estimations, the investment required for the mine will amount to 83 billion FCFA.
The State Burkina Faso will benefit from its operation approximately 121 billion FCFA in terms of royalties, taxes, dividends and other taxes connected to the activities of the mine.
Forecasts showed that the building of the mine should begin in 2015 and the production up from the second half of the same year.
The feasibility study indicated a production of 949 000 ounces of gold, or 97 000 ounces per year during the eight and a half years life time of mine.
The Karma gold-bearing project covers 856 km² and includes five fields with a processing by lixiviation unit. It is situated at about 200 kilometers from the Liguidi project covering 168 km also used by TrueGold Mining.
Since 2009, gold has become the first export product of Burkina Faso, outclassing thus cotton.
The gold-bearing production was 24 tons in 2010, 32 tons in 2011 and 32, 518 tons in 2013. These productions yielded 700 billion FCFA of export receipts.
Original text by: Blaise AKAME