Resource World Magazine

J U N E / J U L Y 2 0 1 6 www.resourceworld.com 51 project financing to develop the Kalana Main Project. As a result of these activities, the com- pany anticipates that the Kalana Main Project will be sufficiently advanced to consider a con- struction decision during 2016, subject to the availability of adequate financing on a timely basis," Avnel wrote in a recent (April 29, 2016) company news release. The feasibility mine plan for Kalana Main provides for average annual production of 148,000 ounces and during the first five years the total cash cost of US $507/oz of gold and an average on-site all-in-sustaining cost of US $595/ oz. The total production over the 18-year mine life is predicted to be 1.82 million ounces with gold recovery rates of 92%. Mining will be done from a single open pit over 12 stages, during which a total of 228 mil- lion tonnes will be mined with a waste-to-ore ratio of 9.9:1 including the pre-strip. The deposit contains high-grade mineralized zones that will be extracted by selective min- ing using 5-metre benches. Bulk mining of the waste zones will be conducted on 10m benches. The mine area consists of a weathered zone to an average depth of 60 metres below surface which is amenable to free digging. The mining schedule targets the areas of saprolite that will generate higher cash flow early in the mine life. The pre-strip of six months will provide ore stockpiles to enable higher grade ore to be pro- cessed in the early years of the mine life. Ore from the open pit will delivered to the processing plant, which will consist of a con- ventional two-stage crushing circuit and a single-stage milling circuit to achieve a tar- get grind size of 80% passing 75 microns. The processing plant design is based on annual throughput rates of 1.5 million- tonnes-per-annum for saprolite and 1.2 million-tonnes-per-annum for saprock and fresh rock material. Gold is to be extracted by gravity concentra- tion and a CIL plant to produce a gold doré bars via elution, electrowinning, and smelting. According to Avnel Gold representatives, the country is safe, the infrastructure necessary for mining is already in place and the Malian government is pro-responsible economic devel- opment. n CRYSTAL EXPLORATION INC. [CEI-TSXV] reported additional dia- monds were recovered from the sample results dated March 6, 2016 from the 100%-owned Muskox kimberlite pipe 14 km southwest of the past-producing Jericho diamond mine, Nunavut. Three additional dia- monds greater than 0.85mm were recovered which results in an increase in overall grade. Diamonds were recovered through an audit of sample results testing the combined x-ray tails and sort rejects, first by magnetic separation and finally by caustic fusion. The audit provides encouraging proof that a portion of the Muskox kimberlite diamond population requires more processing optimization (a modified process flow sheet) to fully recover diamonds. Jim Greig, President and CEO of Crystal Exploration, said, "We are very excited to build upon the initial batch of diamond results that now includes 1.14 carats per tonne at the Muskox kimberlite pipe. With nearly 40 tonnes of unsampled material remaining, this represents an opportunity to show diamonds exist in economic quantities without the expense of immediate drilling." In addition, "We look forward to improving Crystal's diamond potential by discovering new diamond- bearing kimberlite pipes with an inventory of over 50 targets based on our review and re-interpretation of millions of dollars of technical data performed by De Beers Canada and Tahera Corp. from 1996 to 2007." In total, three samples were submitted for diamond processing (sam- ples DDH-MOX-004; DDH-MOX-025 and DDH-MOX-020) and weighed 2,200.40 kg, 2,158.80 kg, and 2,083.50 kg respectively. Diamond recover- ies from the samples include 16, 17 and 48 diamonds greater than 0.85 mm weighing 0.669, 0.675 and 2.376 carats, respectively. The samples graded 0.30, 0.31 and 1.14 cpt (carats per tonne) respectively for each diamond drill hole. The largest diamonds recovered include 0.245 (MOX- 004), and 0.365 and 0.253 (MOX-020) carats. The diamonds are described as off-white, transparent with no to minor inclusions. The samples were processed at the Saskatchewan Research Council laboratory in Saskatoon, Canada. The results provide support that a portion of the diamonds recovered come from eclogitic nodules within the Muskox kimberlite. Due to the physical properties of the eclogitic nodules/xenoliths, a modified pro- cess flow sheet is required to fully liberate the diamonds. Historical work at Muskox overlooked the importance and likely quantity of diamonds within xenoliths. At depths of nearly 300m, the recent samples are from some of the deepest holes drilled at Muskox with each holes MOX-020 and MOX-025 ending in kimberlite. More drilling is required to better define the pipe shape, grade and phases at depth at the Muskox kimberlite and to discover new kimberlites within the Crystal land package/diamond projects. The March 6, 2016 press release reported sample weights in tonnes; however each sample weight should be stated in kilograms (kg). The reported carats/tonne were correct. n crYstal Exploration rEcovErs morE diamonds

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