Chesser Resources Limited reported on its updated Scoping Study ("SS") results and Mineral Resource update for Areas D and A at the Diamba Sud Gold Project in Senegal, West Africa. The Diamba Sud Gold Project covers an area of 53.2km2 and is located in eastern Senegal within the highly prospective Senegal Mali Shear Zone orogenic belt. The Project is located 12km southwest of Barrick's Loulo mine (12.5 million ounces) and only 7km west of Barrick's Gounkoto mine (5.5 million ounces), both across the border in Mali.

The initial Diamba Sud Scoping Study1 (released 15 March 2022 and updated 27 October 2022) has been updated to incorporate the new Mineral Resources at Karakara (released 27 October 2022) and Bougouda (released 8 September 2022) and the updated Area D Mineral Resources (included in this release). Input parameters are consistent with the Scoping Study published on 15th March 2022 and the update published on 27 October 2022, other than those discussed below. Mine optimisation, design and scheduling were undertaken by Kenmore Mine Consulting.

New pit designs were generated for the Area D, Area D South, Karakara and Bougouda resource areas using the slope design parameters in the SS nominally using the USD 1,500/oz optimised pit shells. The pit design for Area A remained unchanged. Total in-pit Mineral Resources increased 17% to 13.9Mt @ 1.7g/t 762koz, Table 1 from the previous SS numbers.

Ore loss of 5% and dilution of 10% was applied to all Mineral Resources within each pit except Bougouda where the resource model was re-blocked to a block size of 2.5x5x5m to simulate a mining unit or SMU due to the narrow nature of the vein-hosted mineralisation. The resultant dilution was 94% and a 5% ore loss was also applied at Bougouda. In Area A the metal and grade reduced slightly from previously reported due to an incorrect ore loss calculation used by the previous consultant which slightly reduced the in-pit Production Target from 5.2Mt @ 1.7g/t gold for 280koz to 5.2Mt @ 1.6g/t gold for 270koz.

This error has also affected the previous Area D reporting. A mining schedule was generated to maintain a processing rate of 2Mtpa and minimise equipment required which resulted in a pit mining sequence starting at Area D followed by Area A then Area D South, Karakara and Bougouda. The mining schedule was incorporated into the financial model using SS costs except for Bougouda where an additional USD 0.20/t small pit mining cost and a USD 2.55/t haulage cost (17km @ USD 0.15/tkm) was applied.