Burkina Faso’s Govrt Authorizes Sana Gold to Exploit Gold at the Zongo project.
The deteriorating security situation in Burkina Faso is impacting the performance of the local mining sector, which heavily relies on gold mining. However, several regions of the country are still unaffected.
In Burkina Faso, Sana Gold SARL has obtained a semi-mechanized mining license for the gold deposit at the Zongo project. This was announced by the government after the Council of Ministers meeting held on Friday, March 10th.
The Zongo project is located in the Center-East region, precisely within the commune of Soudougui. It hosts a mineral resource of 117,122.6 tonnes of gold at a grade of 2 g/t, or 234.30 kg of gold. The annual production is estimated at only 21.12 kg for a total lifespan of eight years.
The government did not detail the project’s contribution to the economy, but it is expected to create jobs and generate revenues for the state, in the form of taxes, in particular.
As a reminder, gold mining is essential to the economy of Burkina Faso, as it is the main exported product in a mining sector that represents over 80% of exports and 16% of the GDP, according to the latest data from the EITI.
