Houndé Project Burkina Faso

The Company's Central Houndé Project, consists of three grassroots exploration permits located in the highly prospective Houndé Greenstone belt approximately 260km south west of Ouagadougou.

Through the Company's wholly owned subsidiary African Star Resources, the Company has entered into an Option Agreement with the holder of the Bongui and Legue permits pursuant to which it has the option to acquire 85% of the two 2 Permits covering an area of approximately 233km2.

The Company has signed a Letter of Agreement to acquire a 90% interest in the Ouéré permit in the Houndé greenstone belt. This is also an early stage exploration project in the region and covers an area of 241km2.

Combined, the Central Houndé Project covers a total area of 474Km2 of prospective underexplored greenstone and therefore provide significant scope for value creation. Initial indications are very positive as there are up to 14 untested artisanal areas within the permits. Further targets have also been identified through remote sensing.

  • Bongui and Legue on Northern border of Endeavour Resources (previously Avion) Houndé2 and Mt Isa's Bantou projects
  • Mineralised structures appears to extend on to Thor project
  • Substantial artisanal workings along mineralised structures
  • Semafo's Mana Mine (4.8Moz Au1 reserves and resources) is located 150km North East and produces ~170koz p.a.

A qualified person4 has not been able to verify the information about nearby resources estimates, and these are not necessarily indicative of potential quantities or grades of mineralization on the Company's own properties.


Footnotes:
  1. 4.8 Moz reserves and resources for Semafo's Mana Mine includes Proven reserves (10.195 Mt @ 2.11g/t = 691.2 Koz) and Probable Reserves (15.487 Mt @ 2.60g/t = 1.293 Moz), Measured (3.398 Mt @ 1.54g/t = 167.9 Koz) and Indicated resources (48.002 Mt @ 1.70g/t = 2.623 Moz). Excludes Inferred resources (38.56 Mt @ 1.68g/t = 2.082 Moz). Resource data extracted from Semafo's website disclosure of resources as at December 31, 2011. Please refer to Semafo's website and filings, for the assumptions used in their determination of their resources and information about their qualified persons.

  2. Hounde Project (Avion Gold Resources, now acquired by Endeavour Mining Corporation) Resources (December 2011): Indicated 13.407Mt @ 2.1g/t -- 0.893Moz. Information as per Endeavour Mining Corporation's website Reserve and Resources table (as of November 14, 2012). Please refer to Endeavour Mining Corporation's website and Sedar filings, for the assumptions used in their determination of their resources and information about their qualified persons.

  3. Bondi Project (Orezone Gold Corporation) Resources (February 2009): Measured 0.92 Mt @ 2.17g/t -- 0.064Moz, Indicated 3.22 Mt @2.10g/t -- 0.218Moz. Information as per Orezone Gold Corporation's Technical Report on the Mineral Resource of the Bondigui Gold Project, February 2009, and as per Orezone's schedule of Resources published on their website (as of November 15, 2012). Please refer to Orezone's website and Sedar filings, for the assumptions used in their determination of their resources and information about their qualified persons.

  4. The Company's qualified person having reviewed the technical information presented in this website page is Mr Brian Montpellier, P.Eng., an independent consultant to the Company. Mr. Montpellier, has over 30 years of experience in the mining industry. He is a member of the Association of Professional Engineers of British Columbia and a Fellow of the South African Institute of Mining and Metals and is a Qualified Person for the purposes of NI 43-101.