Suite 9, 5 Centro Ave, Subiaco WA 6008 P.O. Box 457, West Perth, WA 6872, Australia Ph+61 8 9286 3045 Fax: +61 8 9226 2027 info@birimiangold.com ABN 11 113 931 105 14 January 2014 The Company Announcements Office Australian Securities Exchange Limited AUGER DRILLING DEFINES NEW HIGH TENOR GOLD ANOMALIES AT THE MASSIGUI PROJECT Highlights High priority targets identified by auger drilling for immediate drill testing. Multiple high tenor gold anomalies defined and extended by shallow reconnaissance auger drilling. New sub-parallel mineralised trend identified by multi-element XRF soil analysis to the east of the Ntiola Trend. Excellent potential for the discovery of repetitions of high grade Ntiola-style gold mineralisation. Regional multi-element sampling program to be extended over the broader Massigui Project area. Birimian Gold Limited (ASX:BGS; Birimian and the Company ) is pleased to advise it has received final analytical results from two reconnaissance programs conducted during November and December 2013 at the Massigui Project in southern Mali. Auger drilling investigated extensive untested gold in soil anomalies along trend and adjacent to the Ntiola Lode, and a multi-element soil sampling program over the entire Finkola (Ntiola) and Hanne permits enhanced the geochemical data available for interpretation.
Auger Drilling The auger drilling program conducted by the Company consisted of 407 shallow holes drilled in the area surrounding the Company s Ntiola Deposit, situated in the north of the Massigui Project (Figure 1). Figure 1. Ntiola Region. Prospects are shown in black outline over the arsenic in soil image. Blue boxes highlight the location of reported auger drilling. Analytical results from the auger drilling have delineated two new highly anomalous gold zones at Viper and Konze prospects (Figures 2 & 3), and further constrained the gold anomalies at Wara and Ntiola South. The Company is extremely encouraged by these results as it believes they highlight the potential for discovery of additional shallow highgrade gold mineralisation, similar to the Ntiola Lode, through further reverse circulation and diamond drilling.
New Prospects The Konze Prospect, delineated by broad spaced auger drilling along strike from Ntiola, is a new tightly constrained 1km long gold trend (Figure 2). The peak assay value within the newly defined anomaly is 640ppb gold (0.65 g/t). Konze is interpreted as potentially representing an offset extension of the mineralised system at Kondji, where previous ore grade intercepts have been returned including 11m @ 2.53 g/t Au in RC drilling. Follow up multielement sampling is currently underway in preparation for targeting of additional drilling. The Viper gold anomaly is a high tenor anomaly situated to the west of Ntiola on the Hanne Permit (BGS acquiring 95%). Assay results from the auger drilling program (peak gold value of 607ppb) reinforced previous pit assays and extended the anomalous zone over greater than 600 metres of strike (see Figure 3). The gold in auger anomalism is coincident with strongly elevated multielement geochemistry, suggesting excellent potential for primary gold mineralisation. Further auger drilling is planned to better constrain this highly anomalous zone prior to RC drill testing. The Company believes these two recently delineated prospects are exceptional new targets which occur in areas that have never been subjected to systematic bedrock drilling. These are high priority targets for the next phase of drilling at the Massigui Project. Work conducted on the previously defined broad geochemical highs adjacent to the Wara and Ntiola South anomalies clearly defined the bounds of these anomalies and confirmed continuity of mineralisation between sections (Figure 4). These zones could potentially represent structural off-sets or sub-parallel lodes of the mineralisation along the Ntiola trend. Follow up multielement sampling is currently underway to assist with constraining targets for aircore and/or RC drill testing. Multi-element Sampling In addition to the highly successful auger drilling program the Company conducted a regional multi-element soil sampling program over the entire Finkola (Ntiola) and Hanne permits. Samples were collected on a nominal 200m x 500m spaced grid and analysed on site using a portable XRF device (see Figure 1). The results of the portable XRF analysis has enhanced the potential of a number of previously identified prospect areas. Significantly, a large scale arsenic-in-soil anomaly which is coincident with the Ntiola deposit and extends eastward over the new prospect area at Koble has been delineated. This is highly significant as arsenic bearing minerals are closely related to gold mineralisation at Ntiola and at the nearby world class Morila Gold Mine. The occurrence of arsenic in soils may therefore suggest close proximity to additional gold mineralisation at Koble. Plans are well advanced for follow up auger drilling to investigate this exciting new prospect area. Given the success of the rapid and very cost effective multielement sampling technique in the Ntiola District, the program has now been extended over the broader Massigui Project area. The Company believes this technique, combined with detailed on the ground mapping and follow up sampling, will deliver additional priority targets for auger drilling and subsequent RC drill testing over coming months.
Massigui Project Birimian Gold continues to aggressively explore the Massigui Project and the Ntiola District in particular, with a view to defining new gold resources which will be amenable to processing at the Morila Gold Mine and treatment plant. The Company s auger drilling strategy has been shown to be a highly effective technique for delineating drill targets. The focus of the recent auger program was the immediate surrounds of the Ntiola Deposit. Significantly, other extensive gold and recently delineated multielement soil anomalies are present elsewhere within the Massigui Project area. The work program which is currently underway will systematically investigate these anomalies with auger drilling and RC drilling during the coming months. The Ntiola Deposit (100% BGS) is situated approximately 25km from the Morila Mine and may present a near term opportunity to develop mining operations to supplement ore feed at Morila. Recent preliminary technical studies have provided strong encouragement for development at Ntiola and the Company has commenced investigating a range of commercial opportunities with the nearby mill operator. The Company believes the development of the Ntiola Lode would provide significant cash flow and enable Birimian to further expand its exploration program over the greater Massigui Project area in search of large high value gold deposits. Yours sincerely Kevin Joyce Managing Director Birimian Gold Limited Competent Persons Declaration The information in this announcement that relates to exploration results is based on information compiled by or under the supervision of Kevin Anthony Joyce. Mr Joyce is Managing Director of Birimian Gold and a Member of the Australian Institute of Geoscientists. Mr Joyce has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results. Mr Joyce consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Figure 2. Konze location plan showing maximum gold value in hole. Squares are reported auger drill holes. Circles represent previous drilling and pit sampling. Figure 3. Viper location plan showing maximum gold value in hole. Squares are reported auger drill holes. Circles represent previous drilling and pit sampling.
Figure 4. Wara location plan showing maximum gold value in hole. Squares are reported auger drill holes. Circles represent previous drilling and pit sampling.
JORC Code, 2012 Edition Table 1 Section 1 Sampling Techniques and Data Criteria JORC Code explanation Commentary Sampling techniques Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where industry standard work has been done this would be relatively simple (eg reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay ). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. Auger holes were routinely sampled as 4m composited intervals down the hole. The bottom of each hole was sampled as a 1m interval down the hole. Samples were collected at the drill rig and spear sampled from 1m drill spoils to collect a nominal 2-3 kg sub sample. Routine standard reference material, sample blanks, and sample duplicates were inserted/collected at every 20th sample in the sample sequence. All samples were submitted to ALS Bamako for preparation and analysis by 30g Fire Assay (DL 0.005ppm). Approximately 200g of soil sample was collected at each sample site by screening soil material to passing -1mm. All soil samples were analysed by Company personnel utilising a portable XRF device. Drilling techniques Drill type (eg core, reverse circulation, openhole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, facesampling bit or other type, whether core is oriented and if so, by what method, etc). All holes were completed by vehicle mounted mechanical auger drilling techniques. Hole diameter was nominally 80mm.. Drill sample recovery Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. A qualitative estimate of sample recovery was done for each sample metre collected from the drill rig. Appropriate drill techniques were employed to maximize recovery and sample quality. Holes were terminated when water was encountered in the hole. Drill sample recovery and quality is considered to be adequate for the drilling technique employed. Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. All drill sample intervals were geologically logged by qualified Contract Geologists. Where appropriate, geological logging recorded the abundance of specific minerals, rock types and weathering using a standardized logging system. All sample material was logged and sampled. Subsampling techniques and sample preparation If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all subsampling stages to maximise representivity of All composite and 1m samples were spear sampled at the drill rig. Routine field sample duplicates were taken to evaluate whether samples were representative. Additional sample preparation was undertaken by ALS Bamako laboratory. At the laboratory, samples were weighed, dried and crushed to -2mm in a jaw crusher. A 1.5kg split of the crushed sample was subsequently
Criteria JORC Code explanation Commentary samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. pulverised in a ring mill to achieve a nominal particle size of 85% passing 75um. Sample sizes and laboratory preparation techniques are considered to be appropriate for this early stage exploration and the commodity being targeted. Quality of assay data and laboratory tests The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. Analysis for gold is undertaken at ALS Bamako by 30g Fire Assay with AAS finish to a lower detection limit of 0.005ppm. Fire assay is considered a total assay technique. Review of routine standard reference material and sample blanks suggest there are no significant analytical bias or preparation errors in the reported analyses. Results of analyses for field sample duplicates are consistent with the style of mineralisation being evaluated and considered to be representative of the geological zones which were sampled. Internal laboratory QAQC checks are reported by the laboratory. Review of the internal laboratory QAQC suggests the laboratory is performing within acceptable limits. XRF analysis of soil samples was undertaken utilising an Olympus Delta Premium handheld XRF device Read time for XRF analyses was 1 minute on Beam 2 low level soil package Standard reference material was analysed at every 20 th analysis. No calibration factors or manipulations were made to the raw data reported. Verification of sampling and assaying The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Drill hole data is compiled and digitally captured by Contract geologists at the drill rig. The compiled digital data is verified and validated by the Company s database consultant before loading into the drill hole database. Twin holes were not utilized to verify results. Discuss any adjustment to assay data. Reported results are compiled by the Company s database consultant and the Managing Director. There were no adjustments to assay data. Location of data points Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control. Drill hole collars were set out in UTM grid WGS84_Zone29N Drill hole collars were positioned using hand held GPS. All holes were drilled vertically. Given the shallow reconnaissance nature of the drilling, no downhole surveying was undertaken.. SRTM elevation data was used to establish topographic control where appropriate. Locational accuracy at collar and down the drill hole is considered appropriate for this early stage of exploration.
Criteria JORC Code explanation Commentary Data spacing and distribution Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Holes were nominally drilled on 200m spaced and 100m spaced east-west orientated drill sections. Hole spacing on section was nominally 25m The reported drilling has not been used to estimate any mineral resources or reserves. Whether sample compositing has been applied. Sample compositing has been used. Orientation of data in relation to geological structure Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. Exploration is at an early stage and the true orientation of mineralisation has not been confirmed at this stage. Sample security The measures taken to ensure sample security. Samples are stored on site prior to road transport by Company personnel to the laboratory in Bamako, Mali. Audits or reviews The results of any audits or reviews of sampling techniques and data. There have been no external audit or review of the Company s sampling techniques or data. Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria JORC Code explanation Commentary Mineral tenement and land tenure status Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. A portion of the reported results are from an area within the Finkola Permis de Research, which is held 100% by Birimian Gold Mali SARL, a wholly owned subsidiary of Birimian Gold Limited. A portion of the reported results are from an area within the Hanne Authorisation to Prospect. BGS has the right to acquire a 95% interest in the permit under the terms of an option to purchase agreement with Hanne Trading Company SARL Tenure is in good standing. Exploration done by other parties Acknowledgment and appraisal of exploration by other parties. The area which is presently covered by the Finkola and Hanne Permits was explored intermittently by Randgold Resources in the period 2000 to 2009. Exploration consisted of soil sampling, reconnaissance drilling and pitting, and sporadic follow up RC and diamond drilling. Geology Deposit type, geological setting and style of mineralisation. The deposit style targeted for exploration is lode gold. This style of mineralisation typically forms as veins or disseminations in altered host rock. Deposits of this type often form in proximity to linear geological structures. Surficial geology within the project area typically consists of indurated gravels forming plateau, and broad depositional plains consisting of colluvium and alluvial to approximately 5m vertical depth. Lateritic weathering is common within the project area. The depth to fresh rock is typically 35m vertical. Drill hole Information A summary of all information material to the understanding of the exploration results including a tabulation of the following Auger drilling is a reconnaissance exploration technique. Typically the last meter of each auger hole represents in situ material. As such, results
Criteria JORC Code explanation Commentary information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. are presented asend of hole point samples for each auger hole. Drill hole intersections are not reported in this announcement. Tabulation of drill hole data is not considered material to understanding of the reported results. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. Data aggregation methods In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. Drill hole intersections are not reported in this announcement. Metal equivalent values are not reported in this announcement. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. Relationship between mineralisatio n widths and intercept lengths These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. The reported results are from early stage reconnaissance drilling; as such the orientation of geological structure is uncertain. Drill hole intersections are not reported in this announcement. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg down hole length, true width not known ). All results are presented graphically as point samples in the attached maps and plans. Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. A drill hole location plan is shown in Figure 2 to 4. Balanced reporting Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. All results are presented graphically as point samples in the attached maps and plans. Other substantive exploration data Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. There is no other exploration data which is considered material to the results reported in this announcement. Further work The nature and scale of planned further work (eg tests for lateral extensions or depth Auger drilling and RC is planned to follow up the results reported in this announcement.
Criteria JORC Code explanation Commentary extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. Figure 2 shows the location of planned follow up.