Location and Description of the Project
The 4.15 million ounce Montagne d’Or gold deposit is located in north-west French Guiana, 180 kilometers west of the capital, Cayenne, and 80 kilometres south of the department capital, Saint-Laurent-du-Maroni. The Project is accessible via a 120 kilometre all-season forest road from the town of Saint-Laurent-du-Maroni, where the port of St. Laurent is located, or by small aircraft to the Project's base camp. Several roads traverse the mining concessions providing truck access. The full service camp can accommodate 65 people.
In March 2014, Nordgold executed the definite option agreement with Columbus Gold Corp. (“Columbus Gold”, CGT: TSX-V) contained in the Binding Letter of Intent dated September 17, 2013 under which Nordgold can earn a 50.01% interest in Montagne d’Or project by completing a bankable feasibility study and by spending not less than US$30 million over three years in staged work expenditures.
Nordgold also holds ~9% of Columbus Gold Corp. In October 2014, Mr. Oleg Pelevin, Director of Strategy and Corporate Development for Nordgold, was appointed to Columbus Gold’s board of directors.
Montagne d’Or is located within the Guiana Gold Belt. The mineral deposits of the Guiana Gold Belt are very similar to those in other greenstone terrains such as in West Africa. This will enable Nordgold to apply its deep knowledge of West African geology to the Project and other projects in the region. Columbus Gold, with its many years of operational experience in French Guiana and unique local knowledge will serve a strong partner in the advancement of the project.
Mineralisation consists of semi-massive sulphide bands, stringers and dissemination of probable volcanic origin. Visible gold is rarely observed and preliminary mineralogical work suggests that it occurs along microfractures and on sulphide grain boundaries. Mineral deposits are typical of those in other greenstone terrains such as in Canada, Australia and West Africa. Potential future mining will be by open pit.
The 2013-2014 drilling programme, which commenced at Montagne d’Or in November 2013, has been completed in November 2014.
It is expected that a new resource update on the Montagne d'Or gold deposit incorporating the results of the 2013-2014 drilling programme, which included 25,500 meters of diamond core drilling, will be produced by SRK in Q1 2015.
Metallurgical tests from Montagne d'Or produced an excellent recovery ranging from 95% to 97%.
The Preliminary Economic Assessment of the Montagne d'Or is expected to be completed in Q2 2015.