Kalsaka Gold Mines, known as KGM gold mines is located about 150 km northwest of the Burkina Faso, capital, Ouagadougou. The company mining site is one of the largest mining areas in the country with resources estimated to be 6.5 million metric tons (Mt) of gold at a grade of 1.6 grams per metric ton (g/t) gold, and indicated resources are estimated to be 2.7 Mt at a grade of 1.2 g/t gold. Kalsaka gold mines also continued with construction work activities at its 90% owned Youga gold property, which is located about 180 km southeast of Ouagadougou. Gold reserve estimates at the Youga Mine were reported to be 6.6 Mt at an average grade of 2.7 g/t gold. Commissioning of the mine was scheduled for mid-2007, and production was expected to be about 2,700 kilograms per year (kg/yr). As of November 30, 2006, the company had invested about $21.7 million in the project, had made purchase commitments of about $7 million for equipment and services, and had made additional purchase commitments of about $10.2 million for ongoing development activities. KGM currently export more than 2,700 kilograms of alluvial gold per annum to foreign buyers around the world.

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