Dalafin

Located in south-eastern Senegal, the 472.5 sq km Dalafin licence is positioned in the centre of the Birimian-age Kédougou-Kenieba gold belt that extends from eastern Senegal into western Mali and has already seen multiple major gold discoveries including Randgold Resources' Massawa deposit (3.4 million oz Au) and Oromin Exploration's Sabodala deposit (3 million oz Au) in Senegal, and Randgold's Loulo (12 million oz Au) and Gounkoto projects (5.76 million oz Au) in Mali. Of critical importance is the fact that a number of the gold-rich deposits in the general vicinity of the Dalafin licence are hosted by NNE-trending fault zones, some of which also transect the Dalafin area. Following an earn-in to 75% of the project, the Company signed an agreement with its private Senegalese partner, Energy & Mining Corporation S.A. (EMC), to acquire 85% through the establishment of a new Senegal-registered operating company Stratex EMC S.A.

To date, four main geochemical targets, Faré, Baytilaye, Saroudia, and Madina Bafé, have been confirmed by a 33,408 metre RAB (Rotary Air Blast) and AC (Air Core) drilling programme.

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Target zones within the Dalafin Project, Senegal

Best results from a follow-up diamond and RC drilling programme at the Faré prospect include 3 m @ 10.47 g/t Au and 96 m @ 1.51 g/t Au (FADD-002), 19.5 m @ 1.08 g/t Au (FADD-021), 7 m @ 86.39 g/t Au (FARC-007), 7 m @ 1.64 g/t Su (FADD-013) and 23.5 m @ 1.41 g/t Au (FADD-023). Additional drilling at Faré South was undertaken in November-December 2014 and returned best intervals of 4.8 m @ 1.06 g/t Au (FADD-0026), 3 m @ 1.04 g/t Au and 5 m @ 0.78 g/t Au (FARC-0043), 2 m @ 1.26 g/t Au (FARC-0052), 1 m @ 4.39 g/t Au from 42 m (FARC-0053); and 2 m @1.07 g/t from 59 m (FARC-76). Potential for strike extension of the mineralisation to the north remains.

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RAB/AC, RC and diamond drilling at Faré South; Q4-2014 diamond and shallow RC drilling is highlighted by the purple drill collars.

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Cross section of diamond drilling across drill line 4, highlighting the dominant lithologies and gold grade

Trenching, mapping, and sampling programme at Madina Bafé has confirmed the presence of a 1.2 km by 30-45 m NE-striking mineralised zone in the south-east of the prospect. Mineralisation is hosted by sheeted tourmaline-quartz veins and quartz-tourmaline breccias with best results including 4.0 m @ 1.40 g/t Au (MBT-005), 6.0 m @ 0.86 g/t Au incl. 1.0 m @ 4.40 g/t Au (MBT-005),1.2 m @ 1.14 g/t Au (MTB-003) and 1.0 m @ 1.77 g/t Au. Mineralisation remains open to the east. RC and diamond drilling between trenches MBT-003 and MBT-004 has previously returned excellent intersections - including 9.6 m @ 16.08 g/t Au and 1.5 m @ 2.84 g/t Au - that are indicative of depth-continuity of the zone and of elevated gold contents. Additional trenching is being considered across both the strike extension of Madina Bafé South-East and Madina Bafé West, ahead of a potential drilling programme across key targets in the Dalafin licence.

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RC and diamond drilling at Madina Bafé

During Q1-2016, 1,136 soil samples were collected across four 250 m x 50 m grids in the vicinity of the Faré South Zone to assess possible SW-trending extensions, as well as the importance of a NNW-trending breccia zone identified during the Phase 2 RC drilling campaign. The most significant results yielded were from Grid 3, which clearly show south-westward extension of the Faré South anomaly (>30 ppb) by at least 750 metres and up to 600 m in width. A possible new gold anomaly (10-60 ppb) has also been identified in Grid 1, extending 1,250 m in a NW-SE direction, and this may correlate with NW-trending structures identified elsewhere in the licence area. Multiple, albeit less distinct, NE- and NW-trends are also evident in Grid 4, with a number of samples yielding 30-60 ppb and >60 ppb.

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2016 soil sampling at Faré

Detailed mapping at the Baytilaye prospect has idenfieid three phases of shearing. The apparently later ENE-trending shear orientation (dipping 70-80º SSE) is considered the most important, with gold mineralisation associated with quartz-tourmaline veins at the lithological contact between granitoid rocks and sedimentary units.137 outcrop samples and 19 lag samples yeilded best results of 1.6 g/t Au from a brecciated quartz vein at Baytilaye East and 1.37 g/t Au, 1.23 g/t Au, and 0.92 g/t Au from strongly sheared quartz (+/- tourmaline) veins at Baytilaye West. No significant results were returned from lag sampling.  

Following a project review in 2017, the Company reported that it believes there is still upside at Dalafin but that it is not prepared to commit further funding at this time. It is now seeking joint-venture financing in order to advance exploration work on the project. Discussions have been initiated with a potential joint-venture partner, with a further update anticipated in Q1 2018..