Compass Gold still waiting for Massala mine permit

Executive Summary

• Compass Gold Corp. expects to receive the final small-mine permit for its Massala project in Mali before the end of March, with the company in daily contact with the Malian Ministry of Mines and assured there are no obstacles.
• The company is conducting a second bulk sampling of 90 tonnes of material using a finer grind (<2mm) to optimize gold recoveries, following previous tests that showed ineffective liberation during gravity separation.
• A detailed metallurgical study has been commissioned from Blue Coast Research to determine optimal processing methods, while management indicates that a streamlined, high-grade processing approach offers compelling economics compared to toll-treatment scenarios.

Key Details

• Permitting Status: The Malian Ministry of Mines is expected to issue the small-mine permit for the Massala prospect (located on the 15-km Tarabala trend) before the end of March.
• Bulk Sampling: A second bulk sample of 90 tonnes is being tested from the first zones at Massala.
  • Methodology: Using a finer grind of less than two millimeters, compared to the previous eight-millimeter grind.
  • Objective: To optimize gold recoveries after previous tests indicated gold was not being effectively liberated during gravity separation.
  • Location: Samples taken from the six-to-10-metre-wide, 150-metre-long exposed mineralized zone.
  • Testing Partner: Bagama Mining (Malian company) is crushing and grinding the oxidized material to test for improved gold yield.
• Metallurgical Testing:
  • Conducted by Blue Coast Research in British Columbia, Canada.
  • Samples include two from Massala mineralization and one from the nearby Tarabala mineralized zone.
  • Aim: Independently test for gold recoveries and determine the optimal processing method for facility design.
• Strategic Shift: Management has incorporated recent gold price escalation into planning, determining that a "streamlined, high-grade approach" under a small-mine permit provides compelling economics and attractive alternatives to a toll-treatment, co-production scenario.
• Reporting Timeline: The company expects to report on these initiatives in the coming weeks.

Notable Quotes

• Larry Phillips, CEO: "We continue to wait for the grant of the final small-mine permit for our Massala project. While this process has taken longer than we anticipated, we are in almost daily contact with the Malian Ministry of Mining and have been assured that there are no issues or obstacles relating to our application, and we still expect to be amongst the first to receive a small-mine permit. The timeline, however, is not within our control."
• Larry Phillips, CEO: "We have also commissioned a detailed metallurgical study by Blue Coast Research here in Canada, which will provide additional data for the design of processing facilities on the Massala site."
• Larry Phillips, CEO: "Finally, we have incorporated some of the recent gold price escalation into our planning and have determined that a streamlined, high-grade approach to the initial work under a small-mine permit provides extremely compelling economics and attractive alternatives to a toll-treatment, co-production scenario."