Update on Expanded Small Mine Application and Badogo Permit Transfer
Update on Expanded Small Mine Application
and Badogo Permit Transfer
Toronto, Ontario--(Newsfile Corp. - May 5, 2025) -
Compass Gold Corp. (TSXV: CVB) (Compass
or
the Company)
is pleased to provide a further update on its plans to produce gold at the Massala
prospect located along the 15 km Tarabala Trend, which is contained within the Company's Sikasso
Property in southern Mali.
Highligths
Environmental review process for the Massala small mine permit expanded to allow for
the future development of wholly-owned facility.
SMAT production facility completes successful first production test.
Final upgrades are nearly complete.
Comprehensive environmental process, including full stakeholder consultation,
completed.
Final Small Mine Permit issuance from the Ministry of Mines is pending.
Review and priority ranking of Compass exploration permits leads to agreement to
transfer Badogo Exploration permit to Mina Sable SARL for total consideration >CDN$1.0
million, (434.7 million CFA).
Massala Small Mine Permit
As Compass Gold has previously reported, the Company's Small Mine permit application for Massala,
one of the first under the provisions of the new Malian Mining Code for Small Mines
(
See Compass
news release dated August 19, 2024
)
, has been the subject of a rigorous environmental review. The
original Environmental Ministry's terms of reference for the development of a mining operation at
Massala and Tarabala, combined with a co-production processing arrangement with the nearby SMAT
facility
(
See Compass news release dated October 28, 2024
)
, were expanded to allow for the
eventual development of a wholly-owned and operated Compass processing facility within the permit
area. Compass's technical team and its Environmental consultants have successfully completed the
additional studies and community consultations and are now awaiting final approvals as the last step to
receive the Small Mine Permit. By having completed the expanded review process, Compass will
effectively have pre-approval for the placement of its own processing facility on the Massala permit area.
SMAT Processing Facility Progress
The Compass technical team has also been working closely with SMAT, the ROMACO Engineering
group, and the Company's own consultants on the reopening, testing, and optimizing of the SMAT
processing facility where the first gold production at Massala will take place. Bulk sampling of
Compass's ore from Massala will occur after SMAT's first ore has been processed to confirm recovery
and operating efficiencies. The Massala bulk sampling is expected to begin before the end of May.
Badogo Permit Assignment
As part of the resumption of activity by the Ministry of Mines, under the new mining code, Compass
expects that the process of renewing exploration permits will also resume in the coming weeks. As part
of that process, Compass has reviewed and prioritized its several permit areas, which together
comprise more than 1,000 square kilometres, and has determined that the 100 sq. km Badogo permit
area
(Figure 1)
is suitable for a transfer to another party. In this regard, Compass has entered into an
agreement to transfer the Badogo permit to Mina Sable SARL, a Malian mining company, for total
consideration of just over CDN$1.0 million. The first installment of $200,000
has been received. The next
installment of $480,000 will become due upon the formal assignment of the permit and renewal. The final
payment of $320,000, due in two years, is contingent upon Mina Sable commencing the operation of a
Small Mine on Badogo.
Figure 1:
Location of Tarabala and Massala prospects and the Badogo permit.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/1861/250762_f589ed55d43e8ad9_001full.jpg
Compass CEO
,
Larry Phillips
, said, "These last two months have been extremely busy for our
Compass team in Mali. The volume of data, studies, technical consultations, community meetings and
inspections went far beyond what was initially expected. Fortunately, Dr. Madani Diallo and his team
have had many years of experience conducting these sorts of reviews and applications. From our
perspective, it was encouraging to also see a fully engaged group of government officials, working
together with our team to complete a rigorous process that will ensure that our Massala Small Mine sets
a positive example for any small mine applications in Mali to follow.
"The extra time required to identify, review, and approve the planned site of a future Compass-owned
processing facility was a wise decision, which should benefit us going forward by expediting a move to
independent operations of our small mines in the future.
"With the environmental work completed, the final issuance of the Small Mine Permit should be a
straightforward exercise. Although exact timing is not in our control, we are confident that all stakeholders
are committed to commencing gold production and the flow of related royalties as quickly as possible.
"While we have been focussed on the Massala permit application and the refurbishment and testing of
the SMAT facility, we have also turned our attention to the large endowment of exploration permit areas,
many of which are coming up for renewal. The approach from Mina Sable regarding our Badogo permit
area was just one of several conversations we have had about our lower priority properties.
This was the
first step in recouping past expenditures and adding some funding in the near term.
"Once we commence operations at Massala, we expect there will be other opportunities to realize
significant value for our shareholders from portions of our holdings, which we are not in a position to
advance on our own over the next two to three years."
About Compass Gold Corp.
Compass, a public company having been incorporated into Ontario, is a Tier 2 issuer on the TSXV.
Through the 2017 acquisition of MGE and Malian subsidiaries, Compass holds gold exploration permits
located in Mali that comprise the Sikasso Property. The exploration permits are located in three sites in
southern Mali with a combined land holding of 1,173 sq. km. The Sikasso Property is located in the
same region as several multi-million-ounce gold projects, including Morila, Syama, Kalana and Komana.
The Company's Mali-based technical team, led in the field by Dr. Madani Diallo and under the
supervision of Dr. Sandy Archibald, P.Geo, is conducting the current exploration program. They are
examining numerous anomalies first noted in Dr. Archibald's August 2017 "National Instrument 43-101
Technical Report on the Sikasso Property, Southern Mali."
Qualified Person
This news release has been reviewed and approved by EurGeol. Dr. Sandy Archibald, P.Geo,
Compass's Technical Director, the Qualified Person for the technical information in this news release
under National Instrument 43-101 standards.
Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable securities
laws, including statements regarding the Company's planned exploration work and management
appointments. Readers are cautioned not to place undue reliance on forward-looking information.
Actual results and developments may differ materially from those contemplated by such information.
The statements in this news release are made as of the date hereof. The Company undertakes no
obligation to update forward-looking information except as required by applicable law.
For further information, please contact:
Compass Gold Corporation
Compass Gold Corporation
Larry Phillips - Pres. & CEO
Greg Taylor - Dir. Investor Relations & Corporate
Communications
T: +1 416-596-0996 X 302
T: +1 416-596-0996 X 301
Website:
www.compassgoldcorp.com
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/250762