Red Back acquired the Tasiast Gold Mine from Lundin Mining Corporation in August, 2007. The Company paid a purchase price of US$225 million to Lundin Mining, repaid the Tasiast debt facility with Macquarie Bank Limited (US$42.5 million plus US$0.3 million interest) and retired the gold hedging structure (US$10.1 million). The Company is now the 100% owner of Tasiast, which is debt free and unhedged.
The Tasiast Gold Mine was officially opened by the President of Mauritania, His Excellency Sidi Mohamed Ould Cheikh Abdallahi, on July 18, 2007 with representatives of Red Back in attendance.
Tasiast is now in commercial production.
The Tasiast deposit is within an extensive gold system that is largely under-explored. The deposit is open along strike and at depth. Tasiast is the first mine in the highly prospective 70 kilometre long by 15 kilometre wide north-south trending Archaen age Aoueouat greenstone belt, which is geologically similar to other Archaen greenstone belts in the world that host major gold deposits. The Tasiast property covers a 60 kilometre strike length of the Aoueouat greenstone belt.
The current mine plan only considers existing proven and probable reserves minable by conventional open pit methods. There is excellent potential for extension of the mine life based on the conversion of current resources into reserves. Red Back has commenced a significant drill program aimed at increasing the proven and probable reserves at Tasiast.
Location
The Company's land holdings in Mauritania consist of three permit areas totalling 16,222 km2 in area: the Tasiast, Ahmeyim-Tijirit and Karet.
The Tasiast Permit Area is located in north-western Mauritania, approximately 300 km north of the capital Nouakchott and 162 kilometres east-southeast of the port city of Noudhibou. The Tasiast Permit Area falls within the administrative purview of the Inchiri and Dakhlet Noudhibou Districts and comprises five individual and contiguous PRMs totaling 6,306 km2 in area. Ownership
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