AFRICA SPECIAL — Birim makes fresh discoveries at Dunkwa

“Better safe in Ghana than sorry anywhere else” could well be the motto of Birim Goldfields (BGI-T) in West Africa.

The company has restricted its exploration efforts in that part of the world to two Ghanaian properties: the well-developed Dunkwa and the recently acquired Akrokeri, both of which lie roughly 140 km northwest of Accra, the country’s capital.

Birim was attracted to Ghana because of its comparative political stability, its long gold history, and an abundance of prospective ground. In addition, a government open to foreign investment was recently elected to a 4-year term.

Birim President Denis Simoneau says he is pleased with his company’s experience in the country. “In all of West Africa, Ghana is the place to be,” he says. “They are open to foreign investment and they have a common language, as well as a common-law system that is similar Canada’s.

“I’m not convinced that things can be done quickly in the other [African] countries, and I don’t think I have the patience or the will power [to work in those countries].”

Birim’s involvement in Ghana began when it acquired the core of the Dunkwa property in September 1994. Six months later, it expanded the property by acquiring two adjacent concessions.

Dunkwa lies in the Birimian metasediments and metavolcanics of the Ashanti gold belt, which hosts Ashanti Goldfields’ massive Obuasi mine and several other small producers. About a dozen gold prospects have been identified in Dunkwa, most notably the Mampon prospect, where a sizable gold resource has been established.

In June 1995, Birim dealt Hemlo Gold Mines an option to acquire a 65% interest in the Dunkwa project by spending US$5 million over four years.

Birim worked there for a year before Hemlo took over.

Late last year, however, Hemlo’s assets and interests were acquired by Battle Mountain Canada (BMC-T). Simoneau welcomes the change, saying Battle Mountain’s extensive open-pit experience accounts for the successful development of Dunkwa.

Battle Mountain and Birim intend to test the potential of the 230-sq.-km property for hosting a multi-million-ounce gold deposit similar to the nearby Obuasi mine.

Reimbursement

Any oxide gold reserve identified in the Aboronye-Mampon area of Dunkwa will remain Birim’s property as long as such a zone contains fewer than 300,000 oz. gold. Battle Mountain can acquire its proportionate interest in these oxide gold reserves by reimbursing Birim to the tune of twice that company’s incurred expense.

Recently, the partners outlined three substantial gold-in-soil anomalies at the southern end of the Dunkwa property. All three anomalies, which were defined by gold concentration greater than 100 parts per billion, line up along the Ashanti structural trend (which stretches to Obuasi), just south of the Aniamote prospect.

Interpretation of the soil studies shows that the two northernmost anomalies — Aniamote Extension and Aniamote South — share similar geochemical, structural and topographic characteristics. Associated mineralization is therefore expected to be similar.

In contrast, the southernmost anomaly — Opon — lies south of a major east-west fault that crosscuts the structure. Geophysical data suggest the anomaly belongs to a different structural environment.

The Opon is situated east of a circular resistivity anomaly, which may represent a granitic intrusive — an environment that has hosted gold mineralization elsewhere in Ghana.

Mampon prospect

The size, shape and intensity of the Opon anomaly bear similarity to the Mampon anomaly on the Dunkwa property.

Each of those anomalies was defined as a result of follow-up work at 25-metre intervals along lines spaced 200 metres apart. Trenching over the anomalies is designed to recover structural information in preparation for follow-up drilling.

This next phase of drilling, which is scheduled to begin this month, will also comprise follow-up work on known mineralization at the Asikuma, Adukrom and Chirbra prospects. High-grade veins have been reported at the latter prospect.

On the more thoroughly explored Mampon prospect, drill pads are already in place, and work will resume as soon as permits are secured.

Meanwhile, roughly 30 km to the northeast along the Ashanti trend, Birim is exploring the Akrokeri property, in which it holds a 90% interest. The Ghanaian government holds a 10% stake all of the country’s gold projects, including Akrokeri and Dunkwa.

Meanwhile, Birim is attempting to delineate the remaining minable reserves at the old Akrokeri mine. The operation produced 75,000 oz. gold from 104,000 tonnes of ore from 1907 to 1909, when it was abandoned owing to water problems. Birim is also searching the rest of the property for subsidiary or parallel structures similar to those found at the mine.

The company has collected 2,400 soil samples from Akrokeri, 900 of which have been analysed so far. “Anomalies are already taking shape,” says Simoneau, who adds that drilling at Akrokeri is scheduled to begin later this month.

Birim may seek a partner to develop the Akrokeri project, and Simoneau says some interest has already been generated. “We showed it to Battle Mountain, and they said, `If you’re looking for someone, give us a shout’,” he says.

Birim, however, has not ruled out the possibility of bringing the mine itself into production. “We are not miners, but certainly we would be amenable to a small operation that we could handle on a contracting basis,” he explains.

Simoneau anticipates spending at Akrokeri will reach $700,000-$800,000. He also expects Battle Mountain to spend US$1 million at Dunkwa, bringing it well past the halfway point of its US$5-million earn-in.

Simoneau says he would like to acquire ground in the Tarkwaian rocks to the east, where Goldfields’ Tarkwa gold project is situated. Although little open ground is available in Ghana, he says owners of prospective ground along one of the country’s gold belts are always looking to make deals.