Through August 2011, approximately 18,600 metres of reverse circulation and diamond drilling had been completed on exploration targets within the 100 square kilometre mine permit, independent of the more than 72,000 metre resource expansion program carried out within and immediately adjacent to the Essakane Main Zone resource. Additionally, more than 4,500 metres of aircore drilling has been completed year-to-date over large expanses of the mine permit. These areas are covered with a thin veneer of windblown sands which mask underlying bedrock and limit the effectiveness of surface geochemical surveys. The highest priority anomaly, located south of the Falangountou resource, was the subject of a 26-hole (more than 6,000 metres) drill campaign that ended in August 2011. All assays are pending.

Northern Extension

Earlier in 2011, the Company reported the completion of a combined reverse circulation and diamond drill program on the northern extension of the Essakane Main Zone resource. The Essakane mine stratigraphy and structural architecture was traced for more than 1.4 kilometres at increasing depths to the northwest in a shallow, plunging anticlinal structure. All technical data will be incorporated into the Essakane resource model for the year-end revised resource estimates. As well, Essakane is refining its parameters for resource estimation to reflect the cost and operational experience gained after a full year of production.

Gossey-Korizena Area

Exploration work expanded into the exploration concessions surrounding Essakane in the second quarter of 2011. The focus has been on known and newly identified gold anomalous trends within 15-kilometres of the Essakane operation.

The Gossey-Korizena trend is an intermittently exposed 10-kilometre long gold anomalous zone defined by artisanal workings, historic surface sampling and scout drilling. More than 16,500 metres of aircore drilling has been completed, confirming the continuity of the target anomaly beneath large tracts of transported sand cover.

To date, the Company has completed more than 11,000 metres of reverse circulation and diamond drilling using wide spaced off-sets to historical drill intercepts.

The Gossey-Korizena prospect shows excellent promise; however, oxide potential is limited by the shallow oxide weathering profile encountered to date.

Click here to access additional details of historic and recent drill intercepts within the Gossey-Korizena trend.

Outlook

Essakane's attributable gold production in 2011 is expected to be 340,000-360,000 ounces, and 330,000-360,000 ounces in 2012.

A feasibility study to expand the mine is currently in progress and is expected to be completed before the end of the 2011. The current mine plan includes processing soft rock for the three years at a rate of 9.0 million tonnes per year starting in 2011, followed by approximately nine years of processing hard rock. The study is expected to demonstrate that the hard rock capacity of the mine could be expanded to double the volume of tonnes processed. Assuming a positive outcome of the study, construction could commence in early 2012.