Sarama Resources (SWA.V) has announced an update on the metallurgical test work it was doing on the oxide zone of its South Houndé gold project in Mali, Africa. The company achieved a recovery of 87.2% of the gold in the oxide zones which is quite good. Additionally, 80% of the gold was recovered after 9 days in the column test program.
A recovery rate of 87.2% is excellent news, as the South Houndé project already has a relatively high grade average which means the oxide zone could now very well be used to fast-track the South Houndé project towards production. The projewt will now either be a high-margin project or Sarama could reduce the cut-off grade it used in its resource calculation in order to add more ounces to the resource estimate (as the higher than expected recovery rate would offset a minor reduction in the average head grade).
> Click here to read the press release
Disclosure: The author holds no position in Sarama Resources. Please see our disclaimer for current positions.
