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AFRIcA DoWn UnDeR

Firefinch starting

to buzz at Morila

he headline deal is complete but now the real work begins for
Tnewly energised African gold miner Firefinch Ltd.
Firefinch (previously Mali Lithium) announced on November 11
that it had completed the acquisition of the Morila gold mine in Mali
from Barrick Gold Corp and AngloGold Ashanti Ltd. The deal delivers
Firefinch an asset which has produced more than 7 moz gold over
the last two decades however, executive chairman Alistair Cowden
is more interested in what it could offer up in the next two decades.
Speaking at Africa Down Under ahead of acquisition completion,
Cowden said “Morila the Gorilla” as it is affectionately known, offered
an opportunity like few others in the world. Alistair Cowden
“This mine is the reason Mark Bristow is running Barrick today,”
Cowden said of the Barrick chief executive who launched the highly and it has not had a proper geology team on it since the late-2000s.”
successful Randgold Resources on the back of Morila’s develop- Firefinch is already changing that situation. It has bolstered the ex-
ment. ploration and mining teams with several key appointments and on
The $US27.67 million deal delivers Firefinch a 4.5 mtpa processing November 12 launched its first exploration campaign at the Morila
plant as well as other infrastructure, a functioning tailings retreatment mine site; a programme comprising 45 aircore holes for 675m to test
operation and an inferred open pit resource of 1.3 moz gold. How- potential extensions of the tailings resource which currently stands at
ever, according to Cowden, the wider prospects around Morila are 4.8mt @ 0.5 g/t for 76,000oz gold.
what makes the purchase so exciting. Drilling tailings may not sound the most ambitious start but Cowden
“Morila produced 7.4 moz gold in past production but it has been is adamant keeping the existing retreatment operation going could
neglected for many years,” he explained. “The 40/40 ownership [the have significant benefits for the company.
Malian Government retains 20%] meant there was no real incentive “The first task post-acquisition is ‘don’t break anything’,” he said.
“Let’s keep the cash flow going and put it to work extending the tail-
ings. The stockpiles and tailings have been operating for 10 years
and it’s cashflow positive. Hopefully, we can extend that life but that
will give $US17-20 million cashflow.”
Cowden said that programme would be quickly followed by further
drilling of nearby satellite deposits which were only shallowly mined.
“Hopefully, we will restart that in the early part of next year,” he said.
“We are doing all the work now and will release costs in due course.
Then we move onto the satellite pits and hopefully move up from 40-
50,000 ozpa to something much larger.”
The ultimate aim is to restart mining in the massive Morila pit itself.
Cowden sees ample opportunity.
“The model we are working on is an old AngloGold one,” he said.
“It shows some of the hits they were mining at the bottom of the pit –
44m @ 17 g/t gold and 84m @ 11 g/t – that doesn’t just happen once,
there is more gold there. Even outside the current pit there are hits
such as 56m @ 4.97 g/t.
“We are currently modelling all that and will come up with a new
DELIVERING number soon and then get in there and start drilling. I don’t see us
ever not having rigs here.”
While immediate exploration will be focused on restarting Morila
RETURNS via extensions or satellite deposits, Firefinch sees a much wider op-
portunity on its 700sq km land package.
“We will go straight in and drill the satellite deposits and then infill
Base Resources is an African-focused mineral sands Morila but in the long term, we are looking for big extensions at Morila
producer and developer with an outstanding portfolio. and then new discoveries regionally.”
The Firefinch team is unperturbed by Barrick and AngloGold’s will-
The Kwale Operation in Kenya is an efficient high which to deliver returns to shareholders through both
margin business with extensional potential and the dividends and growth, and a track record of excellence ingness to sell Morila. In fact, Cowden sees similarities with Austral-
Toliara Project in Madagascar is one of the best in safety, community engagement and environmental ian gold’s recent success stories such as Evolution Mining Ltd and
mineral sands development opportunities in the world. stewardship in Africa, Base Resources is truly a
With this portfolio, a robust financial position from unique mineral sands company. Northern Star Resources Ltd.
“The best buying you can do is from a receiver or a major,” he said.
“There are a lot of people in this town [Perth] who have made a lot of
@baseresources Base Resources
baseresources.com.au money out of buying assets from the majors.”
– Dominic Piper

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