Proceeding with a Small Mine Application
Toronto, Ontario, August 19, 2024 – Compass Gold Corp. (TSX-V: CVB) (Compass or the Company) provides an update on the recent follow-up trench sampling program at the Massala prospect, located on the Company’s Sikasso Property in southern Mali (Figure 1).
Highlights
- Assay results are reported from five trenches, each 5-m deep and totalling 305 m in length at Massala
- Best intervals:
- Widest intercept: 21 m @ 3.51 g/t Au (2 m depth; MATR005)
- Highest-grade interval: 1 m @ 40.29 g/t Au (2 m depth; MATR004)
- All results to date indicate a near surface strike length of 150 metres, with the structure open to the south
- New Malian Mining Code provides for a streamlined process for obtaining a Small Mine Permit, with a four-year term allowing total production of 160,000 ounces of gold based on annual mining of up to 200,000 tonnes of ore per year
- Compass has commenced the process required for permit renewals and applications to allow for mining at Massala
Compass CEO, Larry Phillips, said,”These highly encouraging results from the trenches excavated along the Massala zone provide us with the technical data we need to apply for a Small Mine Permit under the new Mining Code in Mali. We believe that the grades and tonnage we are seeing at Massala, combined with the production parameters and fiscal terms defined under the new Mining Code, will allow for an economic plan to reach near term production at this time of a historically high gold price. Over the next three months, our team in Mali will proceed with the required permit renewals, and submit the application for a Small Mine Permit at Massala, which would allow for the production of up to 160,000 ounces of gold over a four-year period.
Our preliminary models indicate that a 50 tonne-per-hour processing plant would be sufficient to process the allowable 200,000 tonnes of ore allowed under the provisions of the new Mining Code, which was confirmed by a decree issued in July of this year.”
Dr. Madani Diallo, Director and Country Manager, added, “We now have 792 assay results along this 150-metre strike length of the Massala target zone, all within 5 metres of the surface. The results show strong grades, which clearly exceed the 1-gram-per-tonne level that we consider to be profitable for a small mine. As we proceed with the Small Mining Permit process, additional sampling and assaying may be used to add to our estimation of total tonnage. We also expect that the nuggety nature of the contained gold could result in higher grades occurring when entire sections of ore are processed.”
Next Steps
The Company has commenced the process of applying for permit renewals for the complete Sikasso Project area (1,173 sq. km), which includes an application for a Small Mining Permit over the Massala and Tarabala prospects (5 sq. km). The new Malian Mining Code provides a streamlined process for such a permit. This permit has a four-year term, which allows a total production of 160,000 ounces of gold with a limit of 200,000 tonnes of ore per year.
Additional trenching results from four sites up to 100 m to the south of the trenches reported here are pending. More sampling is required at Massala to determine the full extent of the near-surface potential of the mineralization, and metallurgical testing will also be needed to determine gold recoveries.
Figure 1: Location of Massala prospect where trenching was completed. Additional artisanal workings along the Tarabala and Massala faults are also illustrated.
Massala Trench Sampling Results
Mineralization at Massala was identified previously by shallow air core drilling with the interception of a wide mineralized zone that included 24 m @ 2.35 g/t Au (SAAC123; see Compass Press release March 28, 2021). Subsequent drilling identified additional gold mineralization along strike and downdip along the 3.5-kilometre Tarabala trend. With higher grades reported near surface, Compass excavated two trenches at Massala to determine if a near surface resource was possible. Samples were collected from trench MATR001 at 1, 2 and 5 m depths (see Compass Press release September 13, 2023). The 1 m depth sample identified gold mineralization over 24 m @ 1.24 g/t Au, the 2 m depth sample 18 m @ 1.44 g/t Au, and the 5 m depth sample 20 m @ 4.13 g/t Au (including 1 m @ 71.6 g/t Au), Figure 2. The sampling is in excellent agreement with the previous drilling. A second trench, MATR002 was excavated 350 m to the south of MATR001 and was designed to test a narrow mineralized zone intercepted in SAAC235 containing 3 m @ 1.11 g/t Au. Sampling at a depth of 1 and 4 m over the 29 m length of this trench did not detect gold grades greater than 0.13 g/t Au. It is likely that the trench did not continue far enough eastward to intercept the mineralization.
The location of trenches MATR003 to MATR007 are illustrated on Figure 2 and represent a distance of 150 m along the mineralized trend. The trenches were sited 25 m apart and 5 m deep, and samples were collected a depths of 2m and 4 m. The assay results of the program are presented in Table 1.
Figure 2: Map showing the location of the completed trenches at Massala.
The widest intercept was recorded from trench MATR005, which contained 21 m @ 3.51 g/t Au, including 3 m @ 20.43 g/t (from 2 m depth) and 4 m @ 1.13 g/t Au (at 4 m depth). The 2 m depth interval compares well with MATR001 immediately to the south, which contained 24 m @ 1.24 g/t Au. MATR004 was located 50 m to the north of MATR005 and contained 4 m @ 13.14 g/t Au (at 2 m), which included the highest grade interval of 1 m @ 40.29 g/t Au.
Trenches MATR006 and MATR007 were excavated 25 m and 50 m, respectively, to the south of MATR001. Mineralized widths encountered in these trenches did not exceed 4 m or grades greater than 1.1 g/t Au at depths of 2 and 4 m. The widest interval was 3 m @ 0.69 g/t Au (at 2 m) from MATR006, which included the highest-grade sample of 1 m @ 1.03 g/t Au.
Technical Details
All trenches at Massala were excavated to a depth of 5 m. Trench lengths varied from 50 to 70 m to account for the width of the mineralization projected to surface from drilling previously performed at the prospect. The total length of the trenches was 305 m. All trenches were mapped and structural measurements recorded. Continuous horizontal channel samples were collected using a diamond saw and carefully chiselled out every metre over the length of the trench.
The excavation was performed by a local contractor under the supervision of Compass geologists. All samples were prepared by Compass staff, and an appropriate number of standards, duplicates and blanks were submitted and analyzed for gold using cyanide-leach (Leachwell™) analysis at SGS (Ouagadougou, Burkina Faso).
Compass, a public company having been incorporated into Ontario, is a Tier 2 issuer on the TSX- V. Through the 2017 acquisition of MGE and Malian subsidiaries, Compass holds gold exploration permits located in Mali that comprise the Sikasso Property. The exploration permits are located in three sites in southern Mali with a combined land holding of 1,173 sq. km. The Sikasso Property is located in the same region as several multi-million-ounce gold projects, including Morila, Syama, Kalana and Komana. The Company’s Mali-based technical team, led in the field by Dr. Madani Diallo and under the supervision of Dr. Sandy Archibald, P.Geo, is conducting the current exploration program. They are examining numerous anomalies first noted in Dr. Archibald’s August 2017 “National Instrument 43-101 Technical Report on the Sikasso Property, Southern Mali.”
Qualified Person
This news release has been reviewed and approved by EurGeol. Dr. Sandy Archibald, P.Geo, Compass’s Technical Director, the Qualified Person for the technical information in this news release under National Instrument 43-101 standards.
Forward‐Looking Information
This news release contains “forward‐looking information” within the meaning of applicable securities laws, including statements regarding the Company’s planned exploration work and management appointments. Readers are cautioned not to place undue reliance on forward‐looking information. Actual results and developments may differ materially from those contemplated by such information. The statements in this news release are made as of the date hereof. The Company undertakes no obligation to update forward‐looking information except as required by applicable law.
For further information please contact:
| Compass Gold Corporation | Compass Gold Corporation |
| Larry Phillips – Pres. & CEO | Greg Taylor – Dir. Investor Relations & Corporate Communications |
| lphillips@compassgoldcorp.com | gtaylor@compassgoldcorp.com |
| T: +1 416-596-0996 X 302 | T: +1 416-596-0996 X 301 |
Website: www.compassgoldcorp.com
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