Australia-based Golden Rim Resources has concluded a positive scoping study on the Netiana Lodes at the Balogo project in Burkina Faso.

The project is estimated to have a net present value of A$46m ($47.35m) revealed the study.

The study was undertaken by Coffey Mining to verify the feasibility of mining and processing operation to explore Inferred Resource of 850,000 tonnes at 6.8 grams per tonnes of gold.

At an estimated gold price of $1,550 per ounce, the mine would generate gross revenue of A$104m ($106.2m) per annum, the study said.

Golden Rim managing director Craig Mackay remarked, "They suggest that should Golden Rim proceed to develop a mine on the Netiana Lodes there is the potential for the Company to have A$40 million-A$50 million in the bank after only 2 years of operation."

The company, meanwhile, is keen on extending the two-year mine life by exploring for satellite resources in the region across Netiana Lodes.

Golden Rim will also seek approvals for conducting a definitive feasibility study with expectations to produce gold by the second quarter of 2014.