Bassari Resources strikes procurement alliance with ARC-Vanture JV

West African gold developer Bassari Resources Limited (ASX:BSR) is pleased to announce a strategic alliance with China sourcing and procurement firm Vanture International for the supply of its processing equipment at the Makabingui Gold Project in Senegal, West Africa.

The alliance is another step forward to becoming a gold producer in 2015.

Bassari carried out an extensive search to identify quality manufacturers worldwide and identified Vanture International to be a leader in its field in the interface of sourcing quality Chinese manufactured mining equipment for export to Africa.

Bassari’s Managing Director Jozsef Patarica said: “Having secured a strategic alliance with Vanture International on the back of assembling the highly experienced development team we are well on our way to fast tracking the development of the Makabingui Gold Project.

“With the experience and proven track record that Vanture has globally I am looking forward to working with the team transitioning Makabingui into a significant gold producer for Bassari and the country of Senegal.”

About Vanture International

Vanture International and its international business arm ASIA’s Resource Connections is an experienced and dynamic Chinese sourcing and procurement firm which has been procuring quality Chinese manufactured equipment for clients internationally for the past 10 years. The company has developed an enviable reputation for good equipment pricing and delivery. It particularly specialises in mobile and fixed plant mining and mineral processing equipment. The team is a highly skilled, professional group of engineers proficient in English and Chinese and with vast international experience.

The company maintains a head office in Melbourne for its international business and Beijing is its operational headquarters. An office and engineering support base is located in South Africa servicing sub-Saharan Africa and West Africa.

Vanture International has exported SAG mills, ball mills, crushers, flotation cells, thickeners, transformers, girth gears, mill liners and grinding media, and Africa is its fastest growing export market for global equipment sales.

ASIA’s Resource Connections-Vanture International joint principal Yolanda Torrisi said: “We are confident Vanture International will be able to offer Bassari Resources Makabingui gold project development outstanding cost efficiencies in the sourcing of equipment, with excellent delivery times. Above all, we have outstanding experience in only working with quality Chinese manufacturers and de-risk the China procurement route for Bassari Resources to ensure equipment is manufactured to international standards, meets confirmed delivery times and is a lower cost source reducing the capital infrastructure spend.”

Fast Facts

Bassari Resources Limited is an Australian listed company focused on discovering and delineating high-grade gold resources which can be developed into profitable operations in the Birimian Gold Belt, Senegal, West Africa.

Makabingui Project Study summary at US$1200/oz gold price:

o Production (recovered gold) 171,000 ounces

o Average annual gold production 50,000 ounces

o Average gold grade to the mill >5.6 g/t gold

o High processing recovery 95%

o Processing rate 300ktpa

o Initial project mine life 3.4 years

o Cash Cost (C1) US$683/oz

o Low additional capital US$12M

o NPV (8% discount rate) US$63M

o IRR 404%

o Pre-capex free cash flow (after tax) US$88M

o Payback from production start <12 months