Bishop Resources is leveraging record gold prices to fast-track its Makabingui project near Senegal. The project, previously an exploration focus, now presents significant economic opportunities thanks to infrastructure and high-grade resources. With an experienced team, the company aims to capitalize on its advantageous position in West Africa’s rich gold region.

Gold prices surged to a record high of US$3052 per ounce last week before settling at US$3023 over the weekend, largely attributed to the U.S. Federal Reserve’s decision to pause interest rate increases. This favorable market climate has prompted gold development companies to expedite their projects to capitalize on these all-time high prices. One such company is Bishop Resources, which is spearheaded by the founding team of Cardinal Resources, known for transforming early-stage exploration projects into successful ventures, notably the $600 million acquisition of Cardinal by China’s Shandong Gold due to the discovery of the 7.5Moz Namdini gold project.

Bishop Resources is now focused on the Makabingui gold project located near Senegal’s border with Mali. This site has outlined a JORC-2004 resource of over 1Moz and is strategically positioned just 10 kilometers from Endeavour Mining’s Sabodala-Massawa, the largest gold mine in Senegal with an output close to 300,000 ounces per annum. The recent surge in gold prices has allowed the company to transition from exploration to development, significantly enhancing the project’s economic viability.

Director David Michael stated that the increase in gold prices has vastly improved project economics, allowing for quicker production timelines than initially projected. He remarked, “The price of gold has changed the economics enormously” and outlined that every US$100 increase in gold price translates to an additional US$17.5 million to the project’s bottom line.

The Bishop Resources team consists of industry veterans with proven success. Malik Easah, one of the founding directors, is also a board member of Asante Gold Corporation, while non-executive director Alex Pismiris has prior experience with Cardinal and Papillon. Michele Muscillo, the proposed non-executive chairman, also aligns with this expertise. Collectively, their enterprises have previously discovered and developed approximately 17Moz of gold, creating substantial shareholder value.

Currently, Mincore is conducting the feasibility study for Makabingui, under the leadership of Cameron Bain, who has a track record of success both in horse racing and mining projects. Michael emphasized that, unlike Cardinal, which started from scratch, Bishop has inherited a significant starting point with a robust existing resource and infrastructure. The company plans to upgrade the existing 300,000-tonne processing plant to enhance production capabilities at a fraction of the cost of building anew.

The Makabingui project was acquired in a beneficial deal through the financially troubled Bassari Resources in 2023 and boasts a gold reserve of 1,005,000 ounces at 2.6g/t, estimated back in December 2012 when gold prices were at US$1200 per ounce—considerably lower than current market rates. Recent drilling efforts have been encouraging, with metallurgical recoveries reaching 96% and significant high-grade intercepts already reported. Assessments indicate a promising potential for further resource expansion and economic viability based on updated feasibility studies.

Bishop Resources holds a compelling future as they navigate the valuable Kedougou-Kenieba Inlier, which crosses Senegal, Guinea, and Mali and contains some of Africa’s richest gold deposits. Michael expressed his optimistic view regarding the region’s geological potential and the support from the Senegalese government, affirming their commitment to responsible development in the gold sector. The company is also exploring additional opportunities at their early-stage North Ghana project, strategically located near other significant gold operations to leverage existing mineralization zones.

In conclusion, Bishop Resources stands at the forefront of gold development in a supportive environment characterized by record-high prices and strategic geographical positioning. With an experienced leadership team and existing infrastructure, the company is well-poised to advance the Makabingui project and harness further exploration potential in West Africa. Their proactive development strategy, combined with promising geological assessments, underscores the opportunity for substantial growth and profitability in the thriving gold market.

Original Source: stockhead.com.au

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