ea415f27-e217-4719-9964-e468dcf4fb2c.pdf
Quarterly Activities Report
For the period ended 31 December 2015
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Golden Rim Resources Ltd (ASX: GMR) is active in West Africa, with a pipeline of gold projects covering over 1,500km2 in the highly prospective Birimian greenstone belts of Burkina Faso and Mali.
At the Korongou Project, in Burkina Faso, Golden Rim has outlined widespread gold mineralisation.
Head Office
Suite 3, Level 1
19 Prospect Street BOX HILL VIC 3128 AUSTRALIA
T: + 61 3 9890 2311
www.goldenrim.com.au
Contact
Craig Mackay Managing Director [email protected]
Directors
Rick Crabb, Non Executive Chairman Craig Mackay, Managing Director Glenister Lamont, Non Executive Director
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Overview
The sale of the Balogo Project has placed the Company in a comparatively unique position as a junior explorer in the current difficult market. The sale has provided the Company with a strong cash position enabling it to consider other opportunities which have become attractive during the market downturn.
During the quarter, Golden Rim undertook extensive reviews of a number of minerals projects across various commodities and on various continents. It is our intention to carefully consider and access the quality and risks of each project that is presented. The Company remains active in seeking an opportunity to invest in and to ultimately add shareholder value.
We are mindful that in the current market, even good news may not impact on the Company's low share price. Therefore, it is our goal to deliver value by positioning the Company to take advantage of the inevitable market upturn, when it arrives.
Of note during the quarter, was the selling of the Company's shares by Acorn Capital Limited (Acorn). Acorn was the Company's third largest shareholder and therefore the sell-off put further downward pressure on the Company's share price.
Exploration during the period was minimal due to the wet season and a decision to suspend work while awaiting the outcome of the November 2015 general elections in Burkina Faso.
Subsequent to the end of the quarter, Burkina Faso experienced an attack for which Islamist militants have claimed responsibility. The attack was isolated to a hotel and nearby café in the capital Ouagadougou. Further, in a province bordering Mali two Australian nationals were abducted. It has been reported that the Australians have been working in the area for many years.
While the Company's operations have not been directly affected by these events, the unrest underscores the need to be cautious, particularly during this period of political transition. Due to the ongoing instability, the Company has decided to further suspend its exploration activities and to monitor the security risk in Burkina Faso on an ongoing basis. Exploration activities are expected to re-commence following a period of consistent stability.
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Golden Rim Resources Ltd I ABN 39 006 710 774 I Suite 3, Level 1, 19-23 Prospect Street, Box Hill VIC 3128, Australia I PO Box 378, West Perth WA 6872, Australia
www.goldenrim.com.au I [email protected] I T + 61 3 9890 2311
Korongou Project, Burkina Faso
The Korongou Project covers part of a highly prospective Lower Proterozoic Birimian Samira Hill greenstone belt in Burkina Faso and is traversed by a significant NE-trending fault splay which is connected to the major Markoye Fault system. This fault system controls a number of major gold deposits in Burkina Faso, including Kiaka (5.9 Moz gold), Bomboré (5.2 Moz gold) and Essakane (6.2 Moz gold). The mineralised fault system extends into western Niger where the 2Moz Samira Hill is located (Figure 1).
The initial Exploration Target for Korongou, detailed in Table 1, is estimated in a range of 7,954,000 to 9,722,000 tonnes grading from approximately 1.8 to 2.2 g/t gold and containing approximately 500,000 to 611,000 ounces of gold.
Table 1. Korongou Exploration Target Estimation
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Exploration Target Area
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Tonnage Range
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Gold Grade Range (g/t)
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Gold Ounces Range
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90%
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110%
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90%
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110%
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90%
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110%
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Guitorga North
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2,924,000
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3,573,000
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1.9
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2.4
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201,000
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246,000
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Guitorga South
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3,643,000
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4,452,000
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1.4
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1.7
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178,000
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219,000
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MCA/MCB Pits
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719,000
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879,000
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1.8
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2.2
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47,000
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57,000
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Diabouga
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669,000
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818,000
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3.0
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3.7
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73,000
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89,000
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TOTAL
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7,954,000
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9,722,000
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1.8
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2.2
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500,000
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611,000
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Notes:
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The Exploration Target was estimated using the following parameters: 0.5 g/t gold cut-off grade; maximum of 100m strike extent from drill holes (where the continuity of the mineralisation is supported by mapping, the location of artisanal workings or anomalous auger results); maximum of 70m vertical extent below surface for the Guitorga North, Guitorga South and Diabouga areas; maximum of 120m vertical extent below surface for the MCA/MCB Pits area; minimum downhole intercept width of 2m; and SG of 2.5.
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A total of 94 RC drill holes were used to prepare the Exploration Target. The holes are generally drilled on lines spaced from 40m - 100m apart, with a spacing along the lines ranging from 40m - 50m.
Cautionary Statement: The potential quantity (tonnage) and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resources and it is uncertain if further exploration will result in the estimation of Mineral Resources.
No field work was carried out on the Korongou Project during this quarter due to the wet season and subsequent general elections, held at the end of November 2015.
Babonga Project, Burkina Faso
No field work was completed on the Babonga Project during the quarter. Golden Rim continued its divestment activity for Babonga.
Yako Project, Burkina Faso
No field work was completed on the Yako Project during the quarter. Golden Rim continued its divestment activity for Yako.
Mali Project (Sepola)
No work was completed on the projects in Mali during the quarter. Golden Rim continues to be in active discussions regarding the divestment of the Sepola Project.
Corporate
The Company continues to be prudent in its expenditure and to access ways to cut costs, where possible. During the quarter, following the expiry of the Company's leased premises in West Perth, Western Australia and the previous significant reduction of staff, the Company changed its registered office to Box Hill, Victoria.
During the quarter the Company conducted its Annual General Meeting which was well attended.
-ENDS-
Figure 1. Location of Golden Rim's Burkina Faso permits and projects.
Table 1: Tenements (additional information in relation to the Company's tenements held at the end of the quarter (on a consolidated basis))
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Tenement name
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Project name
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Golden Rim
Holding
(%)
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Golden Rim's potential equity
(%)
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Changes in the
Quarter
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Mali
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Kolumba North Gourbassi East
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Sepola Sepola
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90
90
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90
90
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Kenibandi East
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Sepola
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100
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100
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Burkina Faso
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Babonga
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Babonga
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100
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100
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Zanna
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Yako
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100
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100
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Korongou
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Korongou
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0
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90
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