Predictive Discovery consolidates ownership of Burkina Faso projects ahead of potential divestment opportunities

Predictive Discovery Ltd (ASX:PDI) has executed an agreement with Progress Minerals Inc, which will see ownership of its Burkina Faso property package, including the 184,000-ounce Bongou gold deposit, return to 100% from a 49% joint venture interest. The move creates a far simpler ownership structure and greater appeal as the company considers potential divestment opportunities for the Burkina Faso assets.  Create value for shareholders Predictive Discovery managing director Paul Roberts said: “Given our focus on the rapidly growing Bankan Gold Project in Guinea, the company has sought to simplify its legacy ownership positions in Cote D’Ivoire and Burkina Faso and, over time, reduce financial commitments wherever possible so that we can maximise our efforts and expenditure in Guinea. “In Burkina Faso specifically, the previous 51:49 joint venture structure in which neither Progress nor Predictive could commit to significant exploration expenditure was an impediment to advancing the projects. “This acquisition of Progress’s interest is, therefore, an important interim step on the way to placing the Burkina Faso project into the hands of a capable and well-funded group which can then re-start exploration and create value for Predictive shareholders while strictly limiting the company’s future cash commitments in Burkina Faso. “While we are fully occupied in Guinea, we remain optimistic about the opportunity for new gold discoveries within the Burkina Faso project. “We have already discovered the Bongou Gold Deposit (JORC resource of 184,000 ounces averaging 2.6 g/t gold) and there is substantial potential to define more resources in a number of drilled gold prospects in the surrounding area.” Low-cost, sensible transaction Predictive Discovery will acquire Progress’s 51% interest through the issue of 4,028,477 company shares to Progress, valued at $240,000. This is considered a low cost but sensible transaction as it does not require the company to undertake future work programs on the property package, and therefore holding costs are expected to be modest. It is Predictive’s plan to seek a partnership or other ownership structure to take control of these properties, through which it can participate in a possible future mine development without being required to fund operations prior to a mine development decision. Burkina Faso package The Burkina Faso package, in the east of the country, covers around 90 kilometres of strike length of the Samira Hill greenstone belt. This belt hosts the 2.5 million-ounce Samira Hill gold deposit across the border in Niger and contains numerous active artisanal gold mine sites along its length. The portfolio comprises a 722 square kilometre land package separated into six permits and two permit applications in two separate project areas – Bongou and Tempetou. Bongou deposit contains a JORC-compliant mineral resource estimate of 184,000 ounces of gold with an average grade of 2.6 g/t. In addition, the permits also include significant exploration potential within 10 kilometres of the Bongou deposit.