Kourou Fing Gold Exploration
&
Development Project
“Executive Summary”
Developing A World Class Gold Deposit
in
Republic of Guinea
October 2009
1. Introduction
ITOK GmbH, the Austrian based company of ITOK Group, has been granted 2 exploration permits for Gold and associated minerals by the Ministry of Mines and Energy of Guinea dated December 19, 2008. The permits for gold exploration cover a total area of 204 square km located in Dinguiraye province, central Guinea.
The exploration Area lies within the very promising gold mineralization zone of Siguiri Basin, part of the Birimian volcano-sedimentary series, which dominates the basement geology of the West African Shield known as the Ghana-Mali-Guinea gold mineralization chain.
The Gold resources of ITOK GmbH are located 550 km North-east of Conakry the Capital, and some 20 km west of LEFA operation Mines of Crew Gold Corporation. Crew Gold is an international mining company with its head office located in United Kingdom. Before 2005 in which Crew Gold took over the exploitation concession of LEFA Mines in Dinguiray, it was operated by Societe Miniere de Dinguiraye (“SMD”), a subsidiary of Guinor. Gold produced by Crew Gold from LEFA Mines for the year ended December 31, 2008 was 197,556 oz and for the year ended December 31, 2007 was 96,927 oz. Crew Gold has an annual production rate target of 360,000 to 420,000 ounces from LEFA mines by 2010.
2. Project Summary
ITOK GmbH has started the prospecting and preliminary explorations on its gold permits in Dinguiray from May 2009.
In this concern, a 5-day Reconnaissance visit was conducted from 27th to 31st May 2009. The reconnaissance visit was very promising and the results of sample analysis taken during the visit prove the existence of rich gold mineralization zones in the Area.
The visit was conducted to two locations named “Kourou Fing” (in local language means Black Rock) located in Zone 2 and “Rogaya” located in Zone 1 within the ITOK’s permit area. In both locations, gold was extracted in traditional manner through digging pits and washing by the local miners and people coming from all over Guinea. The activities in “Rogaya” were more extensive in a manner that a big mining camp was constructed by the miners with hundreds of temporary houses for thousands of miners. According to the miners, about 2,000 kg gold was extracted in “Rogaya” since 2007 and about 10,000 miners were extracting gold at its most production period. Some miners were coming from neighboring countries i.e. Mali and Sierra Leone.
Recently, more promising location for gold mining is discovered in “Orodji” located some 2 km north “Rogaya”. Most miners have moved to “Orodji” although some miners still remained in “Rogaya” continuing the gold extraction. “Orodji” is located in center of ITOK permits in Zone 1. Due to lake of time, it was not possible to conduct visit to “Orodji”.
Laboratory assay on 7 samples taken during visit from alluvial formations and semi-washed gold concentrates show high Au grade even in alluvial samples i.e. DS1@ 9.5 and DS3@ 33 ppm Au.
The documents attached to this Executive Summary provide more information about the Project and are as follows:
• A Copy of Exploration permit;
• Sampling location Map;
• Sample analysis;
• Samples Characteristics;
• Photos of visit to Rogaya;
• Photos of visit to Kouro Fing.
The information and photos attached to this Executive Summary just give an initial sense of extensive gold mineralization and traditional mining in ITOK’s permit area in Dinguiray.
The technical report prepared on the reconnaissance visit would be furnished in next future accordingly.
It is planned the next step of preliminary explorations to be started from December 2009 after ending the rainy season in Guinea.