Vancouver, January 15, 2019 – John Cumming, President and Chief Executive Officer of Stellar AfricaGold Inc., (TSX-V: SPX) (“Stellar” or the “Company”) is pleased to provide the following update:
Balandougou Mill Update
Following the Company’s news release of October 23, 2018 reporting that the initial conclusions of the gravity mill test work were that although the grade of the input mineralization from the B3 gold zone averaged approximately 2.0 g/t Au, a large percentage of the gold grains were too fine to be captured by gravity methods on a large scale operation, the Company has continued to evaluate the viability and economics of several alternatives for adding a cyanide recovery circuit to the existing mill to improve gold recovery and continue the Company’s bulk sample test work. This proposed next step is based upon the 2016 metallurgical report of SGS South Africa that indicated cyanidation could yield up to approximately 96% gold recovery from the gold mineralization at Balandougou’s B3 Zone.
The Company has obtained estimates from mining equipment manufacturers and management has completed a budget for a proposed conversion of the Balandougou gravity mill to a 300 tonnes per day CIL (“carbon-in-leach”) pilot plant to continue its evaluation of the suitability of small-scale mining methods to the surface oxide deposits of the West African Birimian greenstone belt.
Management has begun early stage discussions with several groups regarding financing for the proposed conversion.
Shareholders are encouraged to read the January 15, 2019 News Release in its entirety.
