LONDON (Alliance News) - Shares in Golden Saint Resources Ltd took a hit before recovering Tuesday morning, after the company said it has decided to stop bulk sampling at its Tongo licence area and temporarily move away from the region due to the Ebola outbreak spreading across West Africa.
Golden Saint Resources shares were flat at 2.50 pence Tuesday mid-morning, rebounding after falling to 2.35p soon after the open.
The Sierra Leone-focused diamond and gold exploration company had been in the middle of creating a road to bring its bulk sampling plant, the Dove Explorer, to the area of the Tongo site where the diamond gravel stockpiles are located.
However, the company said that the Ebola situation in the Kenema region has taken a turn for the worse, and due to heavy rains and the high risk of Ebola its employees and contract workers, it has decided to temporarily move away from the Tongo region. It said it will now move to areas where the Ebola virus is not found and continue with bulk sampling.
"All diamond gravel stockpiles have been safely secured...In the meantime, arrangements are being made for the Dove Explorer to be relocated to the Baja region where the company has accumulated stockpiles of diamond gravel in preparation for bulk sampling.
The company said that on completion of the bulk sampling in its Baja licence area, and provided the Ebola situation has improved in the Tongo area, the Dove Explorer will be returned to the Tongo region to complete the bulk sampling for diamonds there.
In the same statement Tuesday, Golden Saint Resources said it has signed a renewable three-year agreement with Abdulai Sesay, under which the company will provide machinery, mining tools, food, fuel, lubricants and all other funds required for the smooth running of the artisanal gold mining operation in the village of Rowaka, in Sierra Leone.
It said that all gold won under the licence is to be sold to Golden Saint Resources and the sale proceeds will be shared between Golden Saint Resources and Sesay Abdulai on the basis of 85% and 15%, respectively.
"The board believe that the artisanal gold recovered from this area will form Golden Saint's next revenue streams. The intention is that the area will continue to be mined for the rest of the year," the company said in a statement.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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