Environmental & Social Review Summary
Project Number
27193
Company Name
TERANGA GOLD (AUSTRALIA) PTY LTD
Date ESRS Disclosed
May 19, 2009
Country
Burkina Faso
Region
Africa
Last Updated Date
Jun 3, 2021
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Jun 24, 2009
Signed : Jun 26, 2009
Invested : Aug 14, 2009
Sector
Gold
Industry
Metals and Mining
Department
Gbl Infrastructure & Natural Resources
Project Description
Gryphon is a mineral exploration company headquartered in Perth, with a listing on the Australian Stock Exchange since April 2004. The company’s flagship project is Banfora, an early stage exploration prospect in south western Burkina Faso. The project area contains five exploration licenses covering a total of 1,150 km2. The project is located in a gold belt zone across Mali and Burkina Faso that is host to some world class deposits including Tongon and Morila. Gryphon commenced exploration at Banfora in late 2005, and since then has embarked on a detailed exploration program. However, the majority of the project area remains unexplored. The company has in the short time, drill-defined at least seven mineralized gold zones with a combined strike length in excess of five kilometers. Significant gold mineralization has been intersected on all seven mineralized zones. The company recently doubled its maiden resources at Banfora to 10.6 million tonnes with an average grade of 2.4 grams per tonne for 820,000 ounces of gold. Banfora has the potential to host a large scale gold mineralization. The company has deployed a highly experienced team of geologists with good experience in the region to conduct the exploration program.
Gryphon appears to be executing a well planned exploration program within the license areas reviewed. At the time of the appraisal three drilling rigs were in use operated by contractors (Boart Longyear and West African Drilling Services) practicing a mixture of compressed air RAB, Aircore and RC reverse circulation coring.
Gryphon has a market capitalization of approximately $37 million (as of May 14, 2009). Gryphon has a broad shareholder base and has attracted a reputable investor group to its share register, including Newmont Mining Corporation (“NMC”), Macquarie Bank, RMB Resources, Genesis Fund and Gryphon’s management team. NMC has exploration tenements to the south and east of Banfora, and its investment in Gryphon presents an opportunity to consolidate any successful exploration programs in this prospective region.
The proposed investment is to provide equity financing of up to A$2 million for Gryphon to further exploration work and complete feasibility studies at Banfora.
Gryphon also has other gold, nickel, uranium and diamond properties in Australia namely: Collurabbie, Mount Windarra, Mount Rankin, Radio, Duggan, Mulgabbie, Ellendale East and Mount Isa Uranium. These properties are either not currently being actively explored by the company or have been optioned to other exploration companies to conduct the exploration work under joint venture frameworks. IFC’s financial support and future funding for Gryphon will only be utilised for continued exploration activities at the Banfora project.
The license area lies in the southern sector of Burkina Faso and is largely tropical with an abundance of savanna with trees or shrubs and sparse forests. This is traditionally a cotton growing area with medium-sized villages located in many parts of the license area.
Gryphon appears to be executing a well planned exploration program within the license areas reviewed. At the time of the appraisal three drilling rigs were in use operated by contractors (Boart Longyear and West African Drilling Services) practicing a mixture of compressed air RAB, Aircore and RC reverse circulation coring.
Gryphon has a market capitalization of approximately $37 million (as of May 14, 2009). Gryphon has a broad shareholder base and has attracted a reputable investor group to its share register, including Newmont Mining Corporation (“NMC”), Macquarie Bank, RMB Resources, Genesis Fund and Gryphon’s management team. NMC has exploration tenements to the south and east of Banfora, and its investment in Gryphon presents an opportunity to consolidate any successful exploration programs in this prospective region.
The proposed investment is to provide equity financing of up to A$2 million for Gryphon to further exploration work and complete feasibility studies at Banfora.
Gryphon also has other gold, nickel, uranium and diamond properties in Australia namely: Collurabbie, Mount Windarra, Mount Rankin, Radio, Duggan, Mulgabbie, Ellendale East and Mount Isa Uranium. These properties are either not currently being actively explored by the company or have been optioned to other exploration companies to conduct the exploration work under joint venture frameworks. IFC’s financial support and future funding for Gryphon will only be utilised for continued exploration activities at the Banfora project.
The license area lies in the southern sector of Burkina Faso and is largely tropical with an abundance of savanna with trees or shrubs and sparse forests. This is traditionally a cotton growing area with medium-sized villages located in many parts of the license area.
Overview of IFC's Scope of Review
The review of this project consisted of appraising environmental, health, safety, and social information submitted by the company, and assessing the company’s operations through a field visit conducted by the project team. IFC’s environmental and social review included a site visit in April 2008 to the Nogbele and Fourkoura Prospects on the Banfora Gold project (“Banfora” or the “project”) area in south-western Burkina Faso by an Environmental Specialist and a Technical Specialist. IFC staff also conducted meetings with management and key technical, environmental and social staff from Gryphon Minerals Limited (“Gryphon” or the “company”).
Interviews were also conducted with potentially affected communities in the Banfora district project area. These communities included those who would likely be directly impacted should mining commence.
Interviews were also conducted with potentially affected communities in the Banfora district project area. These communities included those who would likely be directly impacted should mining commence.
