Nordgold Completes Acquisition of the Ronguen Gold Project
Amsterdam, Netherlands, October 20, 2014 - Nord Gold N.V. (“Nordgold” or the “Company”, LSE: NORD), an internationally diversified pure-play gold producer, is pleased to announce that it has completed the acquisition of the Ronguen Gold Project (the “Project”), a late stage exploration project located just 10 kilometers northwest of Nordgold’s Bissa mine, from Canada’s Goldrush Resources Ltd. (TSX-V:GOD) (“Goldrush”).
On June 11, 2014, Nordgold entered into a Share Purchase Agreement with Goldrush to acquire all the shares of Goldrush’s 100% owned Burkina Faso subsidiary, Goldrush Burkina S.A.R.L. for total proceeds of US$4.25 million.
Goldrush Burkina is the 100% owner of the Ronguen Gold Project. The Project comprises the Tikare and Kongoussi 1 mineral permits. According to a 2012 technical report undertaken by SRK Consulting for Goldrush, the Project contains total gold resources of 384 thousand ounces at 1.3 g/t, including total Measured and Indicated mineral resources of 332 thousand ounces of gold at a grade of 1.22 g/t Au.
Goldrush has invested USD 7.9 million on project development with preparations for the feasibility study underway and Nordgold expects to finalise it in 2015.
The Ronguen Gold project has the potential to be a value accretive development opportunity for Nordgold. It is very close to Nordgold’s existing Bissa mine, providing access to proven high quality facilities, and an experienced management team in an economy which is attractive for gold mining. In addition, indications are that the Project shares very similar ore properties to Bissa, which will therefore enable Nordgold to process the ore at Bissa facilities, thereby extending the Bissa Life of Mine and benefitting from low-cost gold production at this world-class facility.
I am delighted we have completed the acquisition of the Ronguen Project. The success of Bissa has clearly demonstrated our ability to develop these types of project, while it also meets all the stringent criteria we look for in any investment: a large, proven deposit, adjacent to existing infrastructure in a geography where we are used to working. We look forward to progressing the project to feasibility.Nikolai Zelenski, Chief Executive Officer of Nordgold
Nordgold (LSE: NORD) is an international pure-play emerging-markets gold producer established in 2007 and publicly traded on the London Stock Exchange. The Company has expanded rapidly through carefully targeted acquisitions and organic growth, achieving a rate of growth unmatched in the industry during that period. In 2013, Nordgold’s gold production increased to 924 koz from 717 koz in 2012.
The Company operates 9 mines and has 2 development projects, 4 advanced exploration projects and a diverse portfolio of early-stage exploration projects and licenses in Russia, Kazakhstan, Burkina Faso, Guinea and French Guiana. Nordgold employs about 10,000 people.
Goldrush. (TSX-V: GOD) is a Canadian mineral exploration company, focused on gold exploration in Burkina Faso, west Africa.