The Kalana Permit covers an area of 387 km2, which is huge.

In Mali, it is important to understand that the weathering profile runs deep. Near Kalana, the bottom of saprolite within the Kalana Permit is typically between 70 and 100 metres below surface. This weathered layer is immediately underlain by a thin transitional zone followed by fresh, unweathered rock. As a result, there is a general lack of outcropping mineralization, which means detailed geological mapping is not always fruitful; however, airborne geophysical surveys and regional sampling of termite mounds is consistently an insightful exploration tool in this terrene.

We have identified several interesting exploration prospects on the Kalana Permit. Two of the most advanced prospects are Kalanako and Djirila, which have both been drill-tested and are within a reasonable trucking distance to the proposed new mine at Kalana.

exploration

Kalanko Prospect

Kalanako is located less than 3 km northeast of the Kalana Main Project and the open-pit mining operation proposed in the PEA. This close proximity makes Kalanako a high priority exploration target as it has the potential to become a satellite deposit to the mine operation proposed in the 2016 Kalana DFS. Additionally, the soft ore associated with weathered layer is cheaper to mine and process than fresh rock allowing us to potentially increase production while lowering cost.

Several mineralized trends have been established from RC and diamond drilling results in a single northwest-southeast corridor of 1,500 m by 250 m. These mineralized zones are less than 10 m thick and appear to be steeply dipping, often contain high-grade intercepts near surface, as shown in the following section thatĀ helps to summarize some of the key intercepts:

Kalanako

 

The Company plans to follow-up with additional exploration and definition drilling when discretionary funds become available.

Djirila

Djirila is located in the southeast portion of the Kalana Permit, about 20 km from the proposed open-pit mine on the north-central end of the Kalana Permit.

The Djirila prospect was discovered by Avnel Gold in 2004 and drilling in 2005 and 2006 identified high-grade mineralization down to a depth of 150 metres. In 2012, IAMGOLD completed an RC drilling program at Djirila that demonstrated the continuity of gold mineralization.

The following is a cross-section through a portion of the mineralized zone at Djirila that identifies some of the most significant drill results obtained to date.

Djirila

The Company plans to follow-up with additional exploration and definition drilling when discretionary funds become available.

Other Prospects

In addition to Djirila and Kalanako, airborne geophysics, extensive geochemical workand especially termite mound sampling, has identified numerous prospective zones that will be subject to reconnaissance-level exploration work over the coming years with the objective of generating drill-ready targets.

These targets include the Dabaran, Solomania, Tenintoumanina, Sanekourou, Sananfarani, Kodialani and Tonda prospects. Dabaran and Tenintoumanina follow regional structures (particularly, shear zones) that resemble those encountered at Djirila. Additionally, there is a wealth of Soviet-era exploration data that pertains to several of these target areas, including some exploration drilling that yielded encouraging results.

 

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