Compass: Additional Trench Sampling at Massala Identifies Continuity of Gold Mineralized Zones

In This Article:

Proceeding with a Small Mine Application

Toronto, Ontario--(Newsfile Corp. - August 19, 2024) - Compass Gold Corp. (TSXV: 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; MATR004)

    • Highest-grade interval: 1 m @ 40.29.60 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 Mining 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 50ton-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."