Birimian Limited (ASX:BGS; “Birimian” and “Company”) is pleased...

Birimian Limited (ASX:BGS; “Birimian” and “Company”) is pleased to advise that Société des Mines de Morila SA (“Morila”) has given notice of its intention to exercise the option to acquire an Area of Interest within the Massigui Gold Project, situated in southern Mali.

The Massigui Gold Project surrounds the Morila mine lease on three sides and covers strike extensions of the highly prospective geological sequence that hosts the 7Moz Morila Gold Deposit (Figure 1). Birimian’s targeted drilling programs have resulted in significant gold discoveries at the Ntiola, Viper and Koting Prospects. These are situated approximately 25km to the north-west of the Morila Mine Treatment Plant, operated by Randgold Resources Limited.

The Morila Area of Interest comprises 11km2 and covers the gold deposits at Ntiola and Viper. The balance of the project area (607km2) is controlled 100% by Birimian. The agreement with Morila provides a potential low risk, low cost processing solution, whilst the Company retains the significant upside potential for further gold discoveries on the broader project area.

Subject to final title transfer, Morila will make a payment of $1,000,000 to Birimian and pay a royalty of up to 4% of gold produced from the Area of Interest. Feasibility studies and mine permitting are expected to take approximately six months to complete, leading to possible mine development early in the new year. Birimian will provide guidance on expected production when final mine planning has been completed by Morila.